topic Re: Credit Card interest in Credit Cards

Credit Card interest

Anonymous — Sun, 21 Feb 2016 01:20:48 GMT

My wife made a purchase on her CU credit card to keep activity on it. She made the purchases on Feb. 4th for my Valentine's gift.

I reminded her her to pay it off last week, and she did at some point, I believe it was last Tuesday. When I received her statement, I noticed interest charges tacked on... What's the deal? I thought ALL cards didn't charge interest if the balance was paid in full each month?

What would be the reason the interest was charged?

Re: Credit Card interest

Anonymous — Sun, 21 Feb 2016 01:25:44 GMT

@Anonymous wrote:
My wife made a purchase on her CU credit card to keep activity on it. She made the purchases on Feb. 4th for my Valentine's gift.

I reminded her her to pay it off last week, and she did at some point, I believe it was last Tuesday. When I received her statement, I noticed interest charges tacked on... What's the deal? I thought ALL cards didn't charge interest if the balance was paid in full each month?

What would be the reason the interest was charged?

Was the previous statement balance zero, prior to the charge?

Re: Credit Card interest

FinStar — Sun, 21 Feb 2016 01:30:22 GMT

@Anonymous wrote:
@Anonymous wrote:
My wife made a purchase on her CU credit card to keep activity on it. She made the purchases on Feb. 4th for my Valentine's gift.

I reminded her her to pay it off last week, and she did at some point, I believe it was last Tuesday. When I received her statement, I noticed interest charges tacked on... What's the deal? I thought ALL cards didn't charge interest if the balance was paid in full each month?

What would be the reason the interest was charged?

Was the previous statement balance zero, prior to the charge?

OP, no CC would impose finance charges out of the blue. When do the statements typically generate? It appears there was a residual balance in the prior month which trigerred the average daily balance calculation (including new purchases) and ta-da! Finance charge.

Re: Credit Card interest

Anonymous — Sun, 21 Feb 2016 01:36:24 GMT

@FinStar wrote:
@Anonymous wrote:
@Anonymous wrote:
My wife made a purchase on her CU credit card to keep activity on it. She made the purchases on Feb. 4th for my Valentine's gift.

I reminded her her to pay it off last week, and she did at some point, I believe it was last Tuesday. When I received her statement, I noticed interest charges tacked on... What's the deal? I thought ALL cards didn't charge interest if the balance was paid in full each month?

What would be the reason the interest was charged?

Was the previous statement balance zero, prior to the charge?
OP, no CC would impose finance charges out of the blue. When do the statements typically generate? It appears there was a residual balance in the prior month which trigerred the average daily balance calculation (including new purchases) and ta-da! Finance charge.

I'm much better at the question part than the answer part, but yeah...what FS said. Didn't that come across in my question? lol

Re: Credit Card interest

Anonymous — Sun, 21 Feb 2016 03:01:48 GMT

Those are very good questions... I know for sure the balance was 0 prior to the purchases... However, when the billing cycle ended is the other question. I don't have an answer for that.

I just oust got her 2 capital one cards... I think we are going to SD the CU card. I was just curious what y'all thought.

Re: Credit Card interest

FinStar — Sun, 21 Feb 2016 03:05:00 GMT

@Anonymous wrote:
Those are very good questions... I know for sure the balance was 0 prior to the purchases... However, when the billing cycle ended is the other question. I don't have an answer for that.

I just oust got her 2 capital one cards... I think we are going to SD the CU card. I was just curious what y'all thought.

As TortoiseWins mentioned upthread, that's probably where the issue lies. I would be willing to bet there was still a balance on the card at some point (maybe something residual) which caused the f/c to be assessed. I would definitely examine the last two statements to be sure.