12-21-2009 11:13 AM
I'm sorry, this is going to seem so dumb, but I have always paid the full balance on any cards right away, before the due date before and before the statement cuts, so I don't know if this is an issue or not.
OK, I have a Cap 1 card with a $1000 CL. We have had extreme car trouble this month and needed to be in a hotel for a 4 days because of visiting family last month, and because things were tight with Christmas coming up (with 2 toddlers) we used the card more than usual. The balance on the card right now is $855 (though I just paid $200 on it about half an hour ago, so it will be $655 in a day or two).
The payment due date is Dec 29th, and the minimum payment is $15. However, that was going by the last statement balance of $180. Now the balance is much higher. I have paid enough ($200) to cover the minimum payment if they raise it, right?
I think I'm just suffering from extreme guilt for actually carrying a balance.
This is a new Cap 1 card and one of those "credit steps" ones that automatically increases your CL after 3 months of on time paymenst and good behaviour. Will I still be eligible for the increase?
12-21-2009 12:17 PM
If I understand correctly, your additional car/holiday charges (which drove your balance up to $855) came after your prior statement closed (the $180 statement that is due on December 29). Correct? If so...
Your $200 payment will completely pay off the entire statement balance that is due on December 29. You will not incur any finance charges since you will have paid off the statement balance by its due date. The additional $20 will reduce the amount owed on your next statement.
The additional charges to which you refer will appear on the next statement, which will be presumably issued around the beginning of January. Depending on how the minimum payment is determined, your minimum payment may be higher. You can still pay off the January statement balance in full by the due date and avoid any finance charges.
Technically, you're not "carrying a balance" so long as you pay off the statement balance in full each month by the statement due date. You won't be charged any interest if you do it this way. What you are presently doing - paying your balance in full before the statement cuts - will result in a zero statement balance. This isn't a necessary goal unless you're trying to minimize the amount that gets reported to the credit agencies.
If my assumption in the first sentence is incorrect, then disregard the remainder of this message.
12-21-2009 12:36 PM
Thank you so much for replying - yes you are exactly right. The chrages were incurred after the statement came. That's a relief then!
In terms of zero balance, this is a card in my name only and I don't have a SSN or credit report of my own yet. Should get the former in about 2 months time, and the latter 6 months after that. So I'm not concerned about my scores right now, it's DH's credit that I've been working on and he isn't an AU on this card. I play the game with his cards concerning what reports and how much, but right now I just want to keep my nose clean on the Cap 1 card to get the auto CLIs.