What is Pay on Time? What if I don't pay in full?

[Anonymous]

Hello Everyone, 

This question maybe a really stupid question, but I really hope to know that. Hope you guys can help me understand that. 

What is pay on time? That means if you pay the minimun payment like $25, you pay on time?

And how people pay in full balance? I have 2 credit cards and I only use my Capital One Quick Silver One everyday. Becasue I use my credit card everyday, I always have balance on that card, for example, on due date or two days before the due date, I use my card to buy something, it will be pending for several days, how can I pay in full amount and with 0 balance?

Should I just stop using my card one week or 3-4 days before the due date and trying to have 0 balance? What if I don't have 0 balance, let's say, I have $5 in balance, will the bank charge the interest on that? Or on the full amount I spent in that period? I checked my account everyday, it seems even I don't have 0 balance, there is no interest charged on that... I'm so confused.

Thank you so much for your precious time and help me. 

[Anonymous]

You only need to pay the amount due at your statement closing date. If you continue to make charges after the statement closing date then you will pay those charges when the NEXT statement posts.

[Anonymous]

---

@Anonymous wrote:

Hello Everyone, 

This question maybe a really stupid question, but I really hope to know that. Hope you guys can help me understand that. 

What is pay on time? That means if you pay the minimun payment like $25, you pay on time?

And how people pay in full balance? I have 2 credit cards and I only use my Capital One Quick Silver One everyday. Becasue I use my credit card everyday, I always have balance on that card, for example, on due date or two days before the due date, I use my card to buy something, it will be pending for several days, how can I pay in full amount and with 0 balance?

Should I just stop using my card one week or 3-4 days before the due date and trying to have 0 balance? What if I don't have 0 balance, let's say, I have $5 in balance, will the bank charge the interest on that? Or on the full amount I spent in that period? I checked my account everyday, it seems even I don't have 0 balance, there is no interest charged on that... I'm so confused.

Thank you so much for your precious time and help me. 

---

Pay on time is making at least your minimum payment by the due date.

Paying in full is paying the balance in your statement by the due date.

Paying down to zero is paying the balance on the statement as well as any charges afterwards by the due date.

[Anonymous]

---

@Anonymous wrote:

Hello Everyone, 

This question maybe a really stupid question, but I really hope to know that. Hope you guys can help me understand that. 

What is pay on time? That means if you pay the minimun payment like $25, you pay on time?

And how people pay in full balance? I have 2 credit cards and I only use my Capital One Quick Silver One everyday. Becasue I use my credit card everyday, I always have balance on that card, for example, on due date or two days before the due date, I use my card to buy something, it will be pending for several days, how can I pay in full amount and with 0 balance?

Should I just stop using my card one week or 3-4 days before the due date and trying to have 0 balance? What if I don't have 0 balance, let's say, I have $5 in balance, will the bank charge the interest on that? Or on the full amount I spent in that period? I checked my account everyday, it seems even I don't have 0 balance, there is no interest charged on that... I'm so confused.

Thank you so much for your precious time and help me. 

---

Welcome to the forum! Pay on time is paying at least the minimum due by the due date. For maximum scoring, let only one card report about 1% of your CL. Do not let all cards report 0 bc it lowers your score. In regards to the interest, as long as you PIF (pay in full the statement balance), Cap1 won't charge you interest.

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

Hello Everyone, 

This question maybe a really stupid question, but I really hope to know that. Hope you guys can help me understand that. 

What is pay on time? That means if you pay the minimun payment like $25, you pay on time?

And how people pay in full balance? I have 2 credit cards and I only use my Capital One Quick Silver One everyday. Becasue I use my credit card everyday, I always have balance on that card, for example, on due date or two days before the due date, I use my card to buy something, it will be pending for several days, how can I pay in full amount and with 0 balance?

Should I just stop using my card one week or 3-4 days before the due date and trying to have 0 balance? What if I don't have 0 balance, let's say, I have $5 in balance, will the bank charge the interest on that? Or on the full amount I spent in that period? I checked my account everyday, it seems even I don't have 0 balance, there is no interest charged on that... I'm so confused.

Thank you so much for your precious time and help me. 

---

Pay on time is making at least your minimum payment by the due date.

Paying in full is paying the balance in your statement by the due date.

Paying down to zero is paying the balance on the statement as well as any charges afterwards by the due date.

---

WOW!!!! Super clear and super easy to understand, thank you so much!!!

[too-much-time]

Clear, easy - and simplified. Nixon relies on some prevailing conventions. You can pay in full at any time for instance; the consequences are naturally different. And is it the statement balance or the outstanding balance that gets paid?

[Anonymous]

Yes, pay on time is minimum payment or more if you like.  Paying the balance is the CURRENT BALANCE showing on your statement.  Note that this might not be ALL that you owe.  Always check to see what the entire balance is if you want to PIF and have it report a zero balance.  And make sure you do this before it is due.  Maybe 1 day.  And make no more charges until you see a new statement.  

[NRB525]

---

@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

Hello Everyone, 

This question maybe a really stupid question, but I really hope to know that. Hope you guys can help me understand that. 

What is pay on time? That means if you pay the minimun payment like $25, you pay on time?

And how people pay in full balance? I have 2 credit cards and I only use my Capital One Quick Silver One everyday. Becasue I use my credit card everyday, I always have balance on that card, for example, on due date or two days before the due date, I use my card to buy something, it will be pending for several days, how can I pay in full amount and with 0 balance?

Should I just stop using my card one week or 3-4 days before the due date and trying to have 0 balance? What if I don't have 0 balance, let's say, I have $5 in balance, will the bank charge the interest on that? Or on the full amount I spent in that period? I checked my account everyday, it seems even I don't have 0 balance, there is no interest charged on that... I'm so confused.

Thank you so much for your precious time and help me. 

---

Pay on time is making at least your minimum payment by the due date.

Paying in full is paying the balance in your statement by the due date.

Paying down to zero is paying the balance on the statement as well as any charges afterwards by the due date.

---

WOW!!!! Super clear and super easy to understand, thank you so much!!!

---

To clarify OP, the "Due Date" is the date that is printed on the statement as when the payment is due, not the actual date the statement prints.

If you want to follow the advice to have $0 show on the actual statement when you have been using the card leading up to that statement, then yes, it is advisable to stop using the card for a few days prior to when you think the statement will print, and make payments of those amounts planning for those to clear the bank before the statement prints.

However, you can show amounts on a CC statement, and if the amount that is on the statement balance is paid (that statement balance only) by the payment due date of the statement, then you pay no interest on the statement balance. The new charges that you add to the card after the statement date, which appear as the next statement balance, also do not have any interest charges. As long as you are paying the statement amount by the statement payment due date, you won't pay any interest.

You only start to pay interest if you don't pay the full statement amount, only pay more than the minimum payment but less than the statement amount.

While it is commonly noted here to "pay before statement cuts", that tactic is to try to enhance the FICO score, it is not necessary to pay before the statement cuts in order to avoid interest costs, you have until the statement payment due date to avoid interest cost. That is the "grace period" (applies to most cards except for predatory cards like CreditOne which charge interest from the moment the charge is made).

[takeshi74]

---

@Anonymous wrote:

And how people pay in full balance? I have 2 credit cards and I only use my Capital One Quick Silver One everyday. Becasue I use my credit card everyday, I always have balance on that card, for example, on due date or two days before the due date, I use my card to buy something, it will be pending for several days, how can I pay in full amount and with 0 balance?

---

"Full" is generally in reference to the statement balance.  You can pay the statement balance in full and still have a current balance.  All of this is associated with the statement cycles.  Your posted charges within a given cycle are totaled to be the statement balance along with any applicable credits, fees, etc.  Once a statement cycle closes out no other amounts will post to it, you'll be in a grace period (if applicable) and the statement balance will have a due date after the grace period ends.  Charges that post after a cycle closes will end up in the next statement cycle.

---

@Anonymous wrote:

What if I don't have 0 balance, let's say, I have $5 in balance, will the bank charge the interest on that?

---

You don't have to have a 0 current balance to avoid paying interest.  Just pay the statement balance in full.

If you carry a balance that will be subject to interest.  You'll also lose your grace period and any future charges begin accruing interest immediately.  It generally takes paying in full for two cycles to address the residual interest if you do that.