i don't understand about chase or PIF

[JustinNguyen]

I PIF 2 weeks before due day but they still charge interest on it?

09/18/201309/18/2013 FeePURCHASE INTEREST CHARGE$16.09

09/07/201309/08/2013 PaymentPayment Thank You - Web-$4,444.46

 09/03/201309/04/2013 SaleSTREET AND TRAIL MOTORSPO$3,187.33

Can someone explain for me what can i do to avoid interest?

[takeshi74]

It's not just Chase.

Did you PIF for the prior statement as well?  If carry a balance then interest will be charged on purchases in the new billing cycle starting on the date each purchase is made.  PIF on the next billing cycle and you'll avoid interest.

[JustinNguyen]

I Did. I called chase and they told me, when i PIF and re-used again i have to PIF again before statement cut off.  i learned now

[john398]

Chase has something they used called average daily balance or something like that, I have seen intrest on my card as well even if I pay in full before dure date

[red259]

Wow. I did not know you got hit with interest on purchases made at the time of purchase in new billing cycle if you carried balance over. Even more of a reason to not carry a balance.

[snowkitty]

Ok....I'm confused. I have the freedom card and am still in the 0% interest promo. That will end in November. So, if I charge items through the month and pif before the statement cuts, I will still be charged interest for the days I ran a balance even though it's in the same month?

[john398]

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@snowkitty wrote:
Ok....I'm confused. I have the freedom card and am still in the 0% interest promo. That will end in November. So, if I charge items through the month and pif before the statement cuts, I will still be charged interest for the days I ran a balance even though it's in the same month?

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There is a grace period so I do not think you will have intrest

[enharu]

Look at the T&C. Usually the grace period is 30 days, but it can also be as short as 21 days. As long as you pay by the grace period, you will not be charged interests.

The last day of the grace period is usually your due date most of the time. If you are paying from a non-chase bank account, you have to make sure the payment posts on that day to be on the safe side, which means you might have to pay a few days earlier, depending on how long it takes for your bank to clear that payment.

[vanillabean]

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@red259 wrote:
Wow. I did not know you got hit with interest on purchases made at the time of purchase in new billing cycle if you carried balance over. Even more of a reason to not carry a balance.

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Oh yes, that's a particularly nasty one, a double whammy so to speak.

[longtimelurker]

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@JustinNguyen wrote:

I Did. I called chase and they told me, when i PIF and re-used again i have to PIF again before statement cut off.  i learned now

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Not quite sure what you mean.   Is it just:

Start out at 0 balance on this and previous cycle:

I spend $X on purchases

A few days later I pay $X

I spend $Y more

Statement closes.

In this case you will of course pay interest because you didn't really PIF (you would have needed to pay X+Y).   However if the order is:

I spend $X on purchaes

A few days later I pay $X

Statement closes

I spend $Y

there won't be interest if you pay the full balance (which will include Y) on the next statement by the due date.