@Sophiamarie wrote:Hello everyone, I am very confused, I let my balances revolve on my capital one and bank of america credit cards last month, I sent the minimum payment and of course I had to pay interest. Now this month I paid in full, I wanted both statements to close with a $0 balance so they could report that way to the CRAs. However! they charged me interest!
and both cards closed with a balance.
a few thoughts: first, grace periods only apply to new charges, not carried over balances. Second, most cards calculate interest on average daily balance, not ending balance. So even though you paid the balance off before the next due date, you still "borrowed money" from them beginning the day of your previous due date and ending the day you paid the full balance. That borrowing period is what you paid interest on. Also, while you clicked the pay button on the 1 st, what day did your payment post?
@Wolf3 wrote:It normally takes 2 months of PIF to get to interest free.
The interest they charged is the interest on the average dailiy balance of the statement period when you PIF. No need to be upset. it is how it works.
Ok thank you ... I just thought that by PIF before the due date they wouldnt charge interest. But I did carry a balance for a month and a half. Now I know better.
@Cdnewmanpac wrote:
@Sophiamarie wrote:Hello everyone, I am very confused, I let my balances revolve on my capital one and bank of america credit cards last month, I sent the minimum payment and of course I had to pay interest. Now this month I paid in full, I wanted both statements to close with a $0 balance so they could report that way to the CRAs. However! they charged me interest!
a few thoughts: first, grace periods only apply to new charges, not carried over balances. Second, most cards calculate interest on average daily balance, not ending balance. So even though you paid the balance off before the next due date, you still "borrowed money" from them beginning the day of your previous due date and ending the day you paid the full balance. That borrowing period is what you paid interest on. Also, while you clicked the pay button on the 1 st, what day did your payment post?
My payment posted the next following day, Feb 2nd, on both Cap One cards and Bank of America.
The No Hassle card has a 0% APR for 6 months so that one reported $0
I forgot to mention I have 4 credit cards.
I wanted 3 of them to report $0 and 1 CC <7%
