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Question on interest and how its determined.

Frequent Contributor

Question on interest and how its determined.

I'm about to make a largish purchase (large meaning more than I LOVE to spend in one day on one thing) this purchase is irrelevant and necessary and I have 100% of it saved up in my checking account.

 

I'd rather NOT drop the full $700 right out of my checking account.

 

I recently was given a CLI with Cap 1 (had to call executive office) and I have my full $750 CL avaialable.

 

My statement for this particular card cuts in a couple days - this months due date was yesterday and I think my statement date has always shown the 12th.

 

If I go tomorrow (the 11th) and make this purchase, obviously I'll be left with only 50 for available credit; however,  my theory is if I make this purchase for $700 it not only buys me till the 9th of November to pay it down but really since it wouldn't be posted in my october statement but also it would post apart of my november due statmetn and thus I'd really have till December 9th to pay it all off before I incur any interest.

 

Is this logic flawed or true.

 

I'd rather NOT take the full 700 out of my checking account and would much rather push payments weekly to Cap1 since I get paid weekly and thus lessening the blow over a month or so. I refuse to pay interest/finance charges and so if it means pay it all off by when my november statment cuts I can clearly do that and thats better than dropping it all now. Again no matter what I can pay it off 100% no matter what the situation I'm just hoping that it buys me an extra month.

 

thoughts? 



Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three
Message 1 of 8
7 REPLIES
Established Contributor

Re: Question on interest and how its determined.

Well the only thing I see, is that you will use more then 90% of your CL. This is considered maxing out a card, which could raise flags. But if you pay it down in short time, this shouldn´t be an issue.

 

I would not apply for anything while have that kind of UTIL.



FICO (TU/EX/EQ): 737/743/739 - Total CL 244+K
Message 2 of 8
Frequent Contributor

Re: Question on interest and how its determined.

Make the purchase after the closing date to gain additional time to pay before interest is calculated.

Message 3 of 8
Frequent Contributor

Re: Question on interest and how its determined.

If I make it before though would interest be accumulate based on the date the card is swiped or the date it posts.

 

If I wait till saturday wouldn't it still be due by the close of the November statement cut in order not accure interest?



Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three
Message 4 of 8
Frequent Contributor

Re: Question on interest and how its determined.

 


shakalaka wrote:

Well the only thing I see, is that you will use more then 90% of your CL. This is considered maxing out a card, which could raise flags. But if you pay it down in short time, this shouldn´t be an issue.

 

I would not apply for anything while have that kind of UTIL.


I'm not concerned about util, either way it will be paid off LONG before I even dream of apping for anything (probably not until march of next year)



Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three
Message 5 of 8
Senior Contributor

Re: Question on interest and how its determined.


scarrollprint wrote:

If I make it before though would interest be accumulate based on the date the card is swiped or the date it posts.

 

If I wait till saturday wouldn't it still be due by the close of the November statement cut in order not accure interest?


The date it posts.  If your bill this month has a balance of $700, you have to pay it in full by the due date to avoid interest.  If your bill this month has a balance of $0, and the $700 isn't on your bill until next month, then you get the additional time to pay until December.  You're making it more complicated than necessary.  Pay the amount on your bill in full by the due date and you won't pay interest. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Message 6 of 8
Frequent Contributor

Re: Question on interest and how its determined.


Walt_K wrote:

scarrollprint wrote:

If I make it before though would interest be accumulate based on the date the card is swiped or the date it posts.

 

If I wait till saturday wouldn't it still be due by the close of the November statement cut in order not accure interest?


The date it posts.  If your bill this month has a balance of $700, you have to pay it in full by the due date to avoid interest.  If your bill this month has a balance of $0, and the $700 isn't on your bill until next month, then you get the additional time to pay until December.  You're making it more complicated than necessary.  Pay the amount on your bill in full by the due date and you won't pay interest. 


Well I was just trying to make sure that the billing month on interest was based on the date it posts not the date the card is swiped.

 

Thanks for the info - glad to know I'll have basically have a couple extra weeks interest free to pay it off.

 



Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three
Message 7 of 8
Senior Contributor

Re: Question on interest and how its determined.


scarrollprint wrote:

Walt_K wrote:

scarrollprint wrote:

If I make it before though would interest be accumulate based on the date the card is swiped or the date it posts.

 

If I wait till saturday wouldn't it still be due by the close of the November statement cut in order not accure interest?


The date it posts.  If your bill this month has a balance of $700, you have to pay it in full by the due date to avoid interest.  If your bill this month has a balance of $0, and the $700 isn't on your bill until next month, then you get the additional time to pay until December.  You're making it more complicated than necessary.  Pay the amount on your bill in full by the due date and you won't pay interest. 


Well I was just trying to make sure that the billing month on interest was based on the date it posts not the date the card is swiped.

 

Thanks for the info - glad to know I'll have basically have a couple extra weeks interest free to pay it off.

 


Reading that again, I realize it sounds a little prickly.  Maybe I needed more coffee this morning.  I didn't mean it that way.  I'm just letting you know that the simplest thing you can do is pay in full the balance that ends up on your bill.  Then you'll avoid interest.  Don't need to worry about the rest of it. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Message 8 of 8