topic Re: interest posting to CC after paid off in Credit Cards

interest posting to CC after paid off

Anonymous — Sat, 03 Mar 2018 00:06:04 GMT

Hello, I have been paying off my credit cards lately and have a general question.

When I paid off my Chase Freedom a few months ago, I had a final interest charge assessed from the left over balance.

Today, I paid off my Citi card and my statement cuts on the 8th, I just talked to a rep and said that he "doesnt see any interest on the account right now"...well duh. But I am wondering if there will be interest that posts on this next statement. I noticed the statement has verbaige that says to avoid interest you need to pay off all new balances...so it seems to to indicate there will be some capitalized interest posting next statement?

Any experiences with Citi in this regard?

Re: interest posting to CC after paid off

Anonymous — Sat, 03 Mar 2018 00:37:37 GMT

I've had a couple Citi cards over time and that never happened to me after paying any of my balances off.

Re: interest posting to CC after paid off

HeavenOhio — Sat, 03 Mar 2018 00:49:47 GMT

OP, you're referring to trailing interest, AKA residual interest. That's interest on the previous month's balance that you haven't yet been billed for. Always expect it, and be pleasantly surprised if it doesn't occur.

After paying down a balance, continue to check your statements until you finally have a balance of zero. Actually, you should be checking your accounts on a regular basis anyway just to make sure that nothing fishy is going on.

Re: interest posting to CC after paid off

NRB525 — Sat, 03 Mar 2018 02:05:16 GMT

It depends on the lender, but you want to check your statement as soon as it is available. If any interest, pay it with a pull transaction immediately and don’t use the card at all until the next statement prints with no interest.

With US Bank, their minimum interest can trigger another. After a few months of $2 minimums triggering another $2 minimum I had to call them to make it stop.

Re: interest posting to CC after paid off

UpperNwGuy — Sat, 03 Mar 2018 13:45:46 GMT

If you always pay the statement balance, you will never have trailing interest. Once you carry over a balance, however, you leave yourself open to trailing interest. I have found that the best way to stop the trailing interest is to stop using the card until you get a statement with a zero balance. Then you can start using the card again, but from that point onwards, always pay the statement balance. Chase definitely charges trailing interest. I think Citi does too. Most credit unions do not. If you read the terms and conditions of your card, they may use the term "residual interest." That's the red flag.

Re: interest posting to CC after paid off

SouthJamaica — Sat, 03 Mar 2018 14:59:29 GMT

@Anonymouswrote:
Hello, I have been paying off my credit cards lately and have a general question.

When I paid off my Chase Freedom a few months ago, I had a final interest charge assessed from the left over balance.

Today, I paid off my Citi card and my statement cuts on the 8th, I just talked to a rep and said that he "doesnt see any interest on the account right now"...well duh. But I am wondering if there will be interest that posts on this next statement. I noticed the statement has verbaige that says to avoid interest you need to pay off all new balances...so it seems to to indicate there will be some capitalized interest posting next statement?

Any experiences with Citi in this regard?

It's not about Citi, it's about all credit cards. You most likely will have interest posting on the upcoming statement.

Re: interest posting to CC after paid off

Anonymous — Sat, 03 Mar 2018 15:25:44 GMT

I don't know if this would work on all cards that post trailing interest, but overpaying the statement balance by a few dollars may take care of it. Better yet, overpay the complete balance including any pending charges, and give the card a chance to hit a zero (or negative/credit) balance... then there's nothing left to charge interest to, and if any interest does post, it gets paid off by the credit balance right away.

If that doesn't work, you'll have to repeat the process and stop using the card until any trailing interest trails off.

Re: interest posting to CC after paid off

Anonymous — Sat, 03 Mar 2018 16:07:15 GMT

It is very simple.. You call up and ask for a pay off with the interest. I just did this on my cap one. It is like a car loan there is a per diem rate. Just call the issuer and the exact payment and make the payment on the phone and you're good to go.

Now if you use the card again after you pay during this cycle I'm not sure what happens.

Re: interest posting to CC after paid off

UpperNwGuy — Sat, 03 Mar 2018 20:18:09 GMT

@Anonymouswrote:
It is very simple.. You call up and ask for a pay off with the interest. I just did this on my cap one. It is like a car loan there is a per diem rate. Just call the issuer and the exact payment and make the payment on the phone and you're good to go.

Now if you use the card again after you pay during this cycle I'm not sure what happens.

That’s a good point. I think you have to wait until the next cycle before using the card.

Re: interest posting to CC after paid off

Anonymous — Sun, 04 Mar 2018 01:02:50 GMT

Quick update on this I called up and they had to manually calculate what it would be (I could have but figured it was a stated payoff in their systems). The lady I talked to was super nice and she left a note on my account, so when I call back after my statement cuts that they can get that interest charged reversed