Rebuilding - When does interest get added?

[Anonymous]

So I got my first card in a LONG time I'm currently gardening and working on my rebuild.

I'm just wondering when does interest get added to the card is it after the statement cuts, the day after the payment due date (if not PIF), or sometime in between?

Thanks! Just trying to stay on top of things.

[dragontears]

It should state on your T&C when interest is charged. Some cards (i.e. creditone) has no grace period so interest is charged from the date of purchase. Most cards with a grace period will not change interest if the statement balance is paid by the due date (there are exceptions such as cash advances). Generally any interest is added to your balance when the statement cuts.

[Anonymous]

I read online it says Federal Law states that they can charge interest no sooner than 21 days from date of purchase so CreditOne would be violating that.

But I'm asking specifically in regards to Chase does anyone know if they do it when the statement cuts or not if paid in full by the due date? (Just because the interest rate is 23%)

[Pway]

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@Anonymous wrote:
I read online it says Federal Law states that they can charge interest no sooner than 21 days from date of purchase so CreditOne would be violating that.

But I'm asking specifically in regards to Chase does anyone know if they do it when the statement cuts or not if paid in full by the due date? (Just because the interest rate is 23%)

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If you are not in a promotional period, they will charge you interest following the statement that was not paid in full.  You will pay interest on those previous month charges and etc.

[Anonymous]

Okay but when exactly. For example I just got my Kohl's Charge card and they said that interest will be added 2 days after the payment due date if not PIF by the due date which is about 4 weeks after the statement cuts.

So I'd like to know if this is the same for Chase or if it's different and how.

[zerofire]

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@Anonymous wrote:
So I got my first card in a LONG time I'm currently gardening and working on my rebuild.

I'm just wondering when does interest get added to the card is it after the statement cuts, the day after the payment due date (if not PIF), or sometime in between?

Thanks! Just trying to stay on top of things.

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Most cards will add the intrest the day after or two days after the due date if it has not been PIF. Intrest is usually calculated from your perchase date so you will have a lot added all at once and it is recalculated daily. When you fail to PIF they calculate the intrest from the perchase date to when you do PIF with intrest.

[Anonymous]

So as long as I PIF by when it says payment due date now interest will be charged?

[Anonymous]

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@Anonymous wrote:
So as long as I PIF by when it says payment due date now interest will be charged?

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Who is the lender? Each lender has different methodology. Cap One for instance, calculates and adds interest due on the statement closing date. If payments equal to or exceeding the prior statement balance were made before the payment due date (three days before closing) regardless of the current balance, then no interest is due.