CU CC Interest Charge Q

[Anonymous]

I was carrying a balance over a period of months on my CU CC that I recently BT'd to a new Discover 0%. My experience with other cards that have carried a balance in the past is that when you pay it to zero, the next statement you end up having an interest charge because they charge you interest on the average daily balance or something like that. My CU CC statement cut on the 17th...no interest!   I kept thinking the statement hadn't cut because I didn't see my balance on the account move off of zero, but then I started seeing the zero balance report and sure enough...no interest charge. Is this usual for CU CC's? Is mine just super awesome? Am I recalling incorrectly on other cards (citi, chase, etc.) 

Nice surprise for a Tuesday, and I could try to figure it from T & C, but I figure others here might have some experience with this. 

[longtime_lurker]

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@Anonymous wrote:

I was carrying a balance over a period of months on my CU CC that I recently BT'd to a new Discover 0%. My experience with other cards that have carried a balance in the past is that when you pay it to zero, the next statement you end up having an interest charge because they charge you interest on the average daily balance or something like that. My CU CC statement cut on the 17th...no interest!   I kept thinking the statement hadn't cut because I didn't see my balance on the account move off of zero, but then I started seeing the zero balance report and sure enough...no interest charge. Is this usual for CU CC's? Is mine just super awesome? Am I recalling incorrectly on other cards (citi, chase, etc.) 

Nice surprise for a Tuesday, and I could try to figure it from T & C, but I figure others here might have some experience with this. 

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mine adds interest on the last business day of the month. I imagine yours will too

[Anonymous]

Huh, my previous interest charges have coincided with my mid-month statements. Fingers crossed! 

[Kirmie2010]

The Balance Subject to Interest Rate is the average of the daily balances during the billing period.

So if the last billing period is paid, you wouldnt owe?  I dunno, they word all this crap weird.

Also, what card was it? I cant find anything on it now.  I thought it was discover, if you owe 2.00 or less on your statement they zero it out to owing 0 dollars.  Wasnt that Discover?  Someone may remember more clearly than me! 

[longtime_lurker]

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@Anonymous wrote:

Huh, my previous interest charges have coincided with my mid-month statements. Fingers crossed! 

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Keep in mind I use my card as basically a LoC. So the interest I am charged is technically interest from cash advances (no fees or higher APR applies). Maybe this matters. I just had to do this by accident (was in process of moving my DD to Charles Schwab and it got "lost" by my employer), my statement was PIF my cut date, and then on the 31st, my online banking showed a balance of .15

Googling this, I believe what is happening is what is known as "residual interest". My CU happens to apply it at the end of your month. Yours may show up on your next statement.

[Anonymous]

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@longtime_lurker wrote:

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@Anonymous wrote:

Huh, my previous interest charges have coincided with my mid-month statements. Fingers crossed! 

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Keep in mind I use my card as basically a LoC. So the interest I am charged is technically interest from cash advances (no fees or higher APR applies). Maybe this matters. I just had to do this by accident (was in process of moving my DD to Charles Schwab and it got "lost" by my employer), my statement was PIF my cut date, and then on the 31st, my online banking showed a balance of .15

Googling this, I believe what is happening is what is known as "residual interest". My CU happens to apply it at the end of your month. Yours may show up on your next statement.

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Ah, maybe it's calculated differently (at different time) from regular interest.