topic Re: Payments made between due date and statement date in Credit Cards

Payments made between due date and statement date

NYC_Fella — Fri, 29 Sep 2023 12:40:08 GMT

Stupid question.

Say my statement cutoff date is the 27th and the payment due date is the 19th. I have a balance due of $500) from my last statement and also have current new charges of $200 (all hypothetical numbers). If I make the minimum payment of $50 by the 19th and then PIF the remaining statement balance of $450 by the 26th, leaving a current new balance of $200, would I still be charged interest on the $450 that was technically "late"?

Re: Payments made between due date and statement date

Horseshoez — Fri, 29 Sep 2023 13:07:39 GMT

Short answer, "Yes".

Re: Payments made between due date and statement date

MorPtsPls — Fri, 29 Sep 2023 15:09:01 GMT

Yes.

In order to not pay interest you must pay the full statement amount by the due date which is the 19th in your example.

Re: Payments made between due date and statement date

Anonymous — Fri, 29 Sep 2023 17:03:13 GMT

@NYC_Fella wrote:
would I still be charged interest on the $450 that was technically "late"?

Others have answered this but a minor point: nothing is technically (or otherwise) "late" here.

To be late, you have to have sent less than the minimum payment (which is most cases probably means not sending a payment at all) before the due date. Then you may get a late fee, in addition to the interest which you are being charged in this case too.

Re: Payments made between due date and statement date

NYC_Fella — Fri, 29 Sep 2023 17:07:44 GMT

Thanks for the responses.

I hate my Apple Card (it seems to be an orphan now at GS) but I love the fact that its payment due date and statement cutoff date are the same; i.e., the last day of the month. It's the only CC I know of that has this feature.

Re: Payments made between due date and statement date

IsFiveCardsEnough — Fri, 29 Sep 2023 21:38:56 GMT

I think most cards put the due date a few days before the statement cut date to ensure that any on-time payment posts and appears on the statement, even if the payment takes time to post.

Apple/GS's system is probably designed to post in real-time, plus you're paying the bill online, so they can have the due date and statement cut the same date.

Re: Payments made between due date and statement date

NYC_Fella — Fri, 29 Sep 2023 21:44:34 GMT

But in this day and age, payments should post instantaneously. There's no need for a buffer period. It's just an artifact which allows issuers to charge extra interest.

Re: Payments made between due date and statement date

Zoostation1 — Sat, 30 Sep 2023 01:10:35 GMT

@NYC_FellaIt varies significantly from lender to lender. My Discove payments usually take 2-3 days before it says my payment posted. It'll still be backdated to the date I inititated it if before the cutoff time, otherwise the following day). Capital One usually will update my available credit the same day, but will take 1-2 days to show posted and backdates as expected. Amex updates everything same day. I've also noticed that when I makle an payment to Amex, it seems to leave my checking account faster than my other lenders.

Re: Payments made between due date and statement date

Anonymous — Sat, 30 Sep 2023 01:14:57 GMT

@Zoostation1 wrote:
@NYC_FellaIt varies significantly from lender to lender. My Discove payments usually take 2-3 days before it says my payment posted. It'll still be backdated to the date I inititated it if before the cutoff time, otherwise the following day). Capital One usually will update my available credit the same day, but will take 1-2 days to show posted and backdates as expected. Amex updates everything same day. I've also noticed that when I makle an payment to Amex, it seems to leave my checking account faster than my other lenders.

I think @NYC_Fella knows that, the point was the with electronic transfer (ACH for example) it should be possible for everything to be near-real-time. (I pay Chase, who gets realtime acknowledgement that this money is in my account, deducts it and sends it to Chase, who can immediately credit it). I think that things like paper checks can create real delays, and there is probably some fraud possibilities involving race conditions etc but in general things could move much faster

Re: Payments made between due date and statement date

OpenBook55 — Sat, 30 Sep 2023 22:27:49 GMT

@NYC_Fella wrote:
But in this day and age, payments should post instantaneously. There's no need for a buffer period. It's just an artifact which allows issuers to charge extra interest.

Tell that to Capital 1. I made a payment to my savor one card directly from a cap one account and they still decided to ut a 4 day hold on the payment and available credit.. 4 DAYS for essentially an internal transfer !!! RIDICULOUS

Re: Payments made between due date and statement date

Horseshoez — Sun, 01 Oct 2023 02:02:56 GMT

@OpenBook55 wrote:
@NYC_Fella wrote:
But in this day and age, payments should post instantaneously. There's no need for a buffer period. It's just an artifact which allows issuers to charge extra interest.

Tell that to Capital 1. I made a payment to my savor one card directly from a cap one account and they still decided to ut a 4 day hold on the payment and available credit.. 4 DAYS for essentially an internal transfer !!! RIDICULOUS

LOL, try moving large(ish) sums of money around; I just moved $75,000 from one bank to another using ACH, the message I initiallly got was 7 business days for the funds to clear; in the end it took 8.