Best strategy for paying off CCs monthly?

[tinuviel]

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@money_talks wrote:

SSA_2013 wrote: This would on apply if your credit card doesn't have a grace period. Usually interest gets billed if you leave a balance one month and pay off the partial amount by the due date. Thus leaving a remaining balance + interest. I don't know of any prime, and even most subprime, that charge you interest in such a way. I let a small balance report for utilization on a different card every month or every other month and never paid interest.  

Interesting. Are you saying all prime cards and subprime cards charge you interest only on your ending balance for the billing cycle?

For example, my Credit One cardholder agreement says "Periodic Finance Charges will be assessed on all “average daily balances” until paid in full. I understand this to mean that if I had a $1,000 balance everyday during the billing cycle and I paid $999.99 right before the statement closed, my ending balance would be $0.01. Credit One would charge interest on about $1,000. Are you saying that most good cards prime/subprime would charge interest on the $0.01?

I am still trying to understand 09Lexie's response though. The post reads that there is a way to avoid interest and lettting a balance report when the statement closes. Does this have something to do with the grace period?

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Yes, this has to do with the grace period.

Let's say that your statement closes on the 1st. Your statement will show a balance with a "Please pay by" date. For the sake of an example, I'm going to say that the pay by date is the 14th. As long as you PIF your statement balance on or before the 14th, you will not be charged interest. You may continue to use your card for new purchases before the 14th, but you must PIF the balance shown on your statement by the 14th in order to avoid interest.