topic Re: not paying balance with no minimum due in Credit Cards

not paying balance with no minimum due

villemiami — Tue, 13 May 2025 14:45:31 GMT

On my Bofa Air France credit card, I have a balance of $1,500, the payment due date is tomorrow, but the Total minimum payment due is $0.

What happens if I my balance in 1 week instead of tomorrow? Will my credit score lower or no?

Re: not paying balance with no minimum due

dfwxjer — Tue, 13 May 2025 15:09:24 GMT

Was the previous statement balance $0?

Assuming you made the $1500 purchase after the previous statement closed, you are correct, and you can pay the balance on your next statement.

Or did you already meet the minimum payment due which left a $1500 balance?

Re: not paying balance with no minimum due

villemiami — Tue, 13 May 2025 15:17:08 GMT

My last statement balance is $3,199.74

I paid $2000 5 days ago.

Re: not paying balance with no minimum due

ptatohed — Tue, 13 May 2025 15:33:09 GMT

You probably have $0 due because you already met your minimum payment due when you paid $2000. But it sounds like youl'll pay interest if you don't pay off the rest of the $3200.

Re: not paying balance with no minimum due

dfwxjer — Tue, 13 May 2025 15:35:05 GMT

@ptatohed wrote:
You probably have $0 due because you already met your minimum payment due when you paid $2000. But it sounds like youl'll pay interest if you don't pay off the rest of the $3200.

Exactly this.

Re: not paying balance with no minimum due

FicoMike0 — Tue, 13 May 2025 16:54:30 GMT

Back to your original question,

Will my credit score lower or no?

Shouldn't affect your scores. In another five days or so, your account should post again. With no further charges, you'll report $1500, less than the $3200 last time. Depending on a lot of other factors, there is the possibility of a score increase, due to lower utilization.

Re: not paying balance with no minimum due

Kforce — Tue, 13 May 2025 18:15:01 GMT

As @FicoMike0 pointed out the issue is not score drop.

The moment it was not paid in full you start paying interest and lose your grace period.

When you pay it off in 7-10 days you will owe more than the $1,500 because of 7-10 days of extra interest.

The 1500 + interest needs to be paid so the grace period can be re-established. Don't have BofA some issuers let you pay a little extra above balance some don't, so you would need to pay at a branch or push from billpay service the carry over balance + 7-10 days of interest.

Example 30% interest , 10 days, $1500 balance, 360 day calendar.

(Don't know real rate or banks calendar)

(1500*(0.30/360)) * 10 = $12.50 interest.

A few dollars extra and they just credit or pay you back.

I would push $1,520 from bill pay.

Re: not paying balance with no minimum due

Gregory1776 — Wed, 14 May 2025 00:36:36 GMT

@Kforce wrote:
As @FicoMike0 pointed out the issue is not score drop.

The moment it was not paid in full you start paying interest and lose your grace period.
When you pay it off in 7-10 days you will owe more than the $1,500 because of 7-10 days of extra interest.

The 1500 + interest needs to be paid so the grace period can be re-established. Don't have BofA some issuers let you pay a little extra above balance some don't, so you would need to pay at a branch or push from billpay service the carry over balance + 7-10 days of interest.

Example 30% interest , 10 days, $1500 balance, 360 day calendar.
(Don't know real rate or banks calendar)
(1500*(0.30/360)) * 10 = $12.50 interest.

A few dollars extra and they just credit or pay you back.
I would push $1,520 from bill pay.

I have never heard of this nor experienced it....

partial payment of the statement balance + then paying the remaining statement balance by the due date shouldn't result in you paying any interest.

The moment you have a portion of the statement balance remaining after the due date is when you begin getting charged interest.

Re: not paying balance with no minimum due

Remedios — Wed, 14 May 2025 01:10:10 GMT

@Gregory1776 wrote:
@Kforce wrote:
As @FicoMike0 pointed out the issue is not score drop.

The moment it was not paid in full you start paying interest and lose your grace period.
When you pay it off in 7-10 days you will owe more than the $1,500 because of 7-10 days of extra interest.

The 1500 + interest needs to be paid so the grace period can be re-established. Don't have BofA some issuers let you pay a little extra above balance some don't, so you would need to pay at a branch or push from billpay service the carry over balance + 7-10 days of interest.

Example 30% interest , 10 days, $1500 balance, 360 day calendar.
(Don't know real rate or banks calendar)
(1500*(0.30/360)) * 10 = $12.50 interest.

A few dollars extra and they just credit or pay you back.
I would push $1,520 from bill pay.

I have never heard of this nor experienced it....
partial payment of the statement balance + then paying the remaining statement balance by the due date shouldn't result in you paying any interest.
The moment you have a portion of the statement balance remaining after the due date is when you begin getting charged interest.

They did not pay in full, they made partial payment that satisfied minimum requirement and reduced amount on which interest will accumulate

Re: not paying balance with no minimum due

villemiami — Wed, 14 May 2025 01:36:11 GMT

After seeing your messages saying that I would pay interest, I decided to pay the remaining balance using my Bank of America checking account. Does using a Bofa account make the payment post faster on a Bofa credit card or is there no difference if I use a bank account from another bank?

Now, the problem is that I have less than $1500 in my Bofa checking account so I'm exposed to a $12 fee. I tranferred money from my Capital One bank account to my Bofa checking account but it said that it would take 1 to 3 days for the transfer to post.

I don't know if Bofa checks that there is a minimum of $1500 every day at midnight.

Anyway, I'm sure paying $12 fee is better than paying interest on $1500.

Re: not paying balance with no minimum due

ptatohed — Wed, 14 May 2025 01:52:56 GMT

@villemiami wrote:
After seeing your messages saying that I would pay interest, I decided to pay the remaining balance using my Bank of America checking account. Does using a Bofa account make the payment post faster on a Bofa credit card or is there no difference if I use a bank account from another bank?
Now, the problem is that I have less than $1500 in my Bofa checking account so I'm exposed to a $12 fee. I tranferred money from my Capital One bank account to my Bofa checking account but it said that it would take 1 to 3 days for the transfer to post.
I don't know if Bofa checks that there is a minimum of $1500 every day at midnight.
Anyway, I'm sure paying $12 fee is better than paying interest on $1500.

You should be fine. It's usually a 30 day rolling average. Just make sure that the amount in your account over any 30 day period averages out to be above $1500.

But, wait, what kind of checking account makes you tie up $1500 or pay a monthly fee? I wouldn't put up with that. Are there other ways to avoid the fee?

Re: not paying balance with no minimum due

villemiami — Wed, 14 May 2025 02:05:05 GMT

Key Features of Bank of America's Advantage Plus Banking:

Monthly Fee:
$12, but can be waived.
Waiving the Fee:
By having at least one qualifying direct deposit of $250, maintaining a minimum daily balance of $1,500, or being a Preferred Rewards client.

Re: not paying balance with no minimum due

villemiami — Wed, 14 May 2025 02:08:33 GMT

I just checked and I will be fine because this morning, I read that when I sell on eBay, it count the same as a direct deposit to get a Welcome bonus for a checking account, so it must be the same in order to waive the $12 fee. I got paid $236 on 5/2 and 5/6, so it's over $250.

Re: not paying balance with no minimum due

Remedios — Wed, 14 May 2025 02:11:58 GMT

@villemiami wrote:
After seeing your messages saying that I would pay interest, I decided to pay the remaining balance using my Bank of America checking account. Does using a Bofa account make the payment post faster on a Bofa credit card or is there no difference if I use a bank account from another bank?
Now, the problem is that I have less than $1500 in my Bofa checking account so I'm exposed to a $12 fee. I tranferred money from my Capital One bank account to my Bofa checking account but it said that it would take 1 to 3 days for the transfer to post.
I don't know if Bofa checks that there is a minimum of $1500 every day at midnight.
Anyway, I'm sure paying $12 fee is better than paying interest on $1500.

Please help me understand ..you're thinking about making payment with account that has insufficient funds?

If you have insufficient funds in BOA checking and you make a payment today, it will be returned and card may be closed. There are very few things worse than returned payment

Also, you already lost grace period so just make the payment from your cap1 or boa account once it's funded. Yes there will be some interest but you'll still have your card

Re: not paying balance with no minimum due

villemiami — Wed, 14 May 2025 02:18:49 GMT

My Bofa checking account had enough fund to pay the remaining balance of my credit card. It's just that my checking account dropped below $1500 and I was afraid to have to pay the $12 fee because of that.

Re: not paying balance with no minimum due

FicoMike0 — Wed, 14 May 2025 03:28:29 GMT

Ditto @ptatohed !

Don't you up with those fee pirates.

Here's a no fee account that pays you a $300 bribe to join.

https://www.thepolicecu.org/welcome-to-the-police-credit-union

As an extra bonus, their debit card says The Police on it!

Re: not paying balance with no minimum due

Follower — Thu, 15 May 2025 08:39:00 GMT

@ptatohed wrote:

But, wait, what kind of checking account makes you tie up $1500 or pay a monthly fee? I wouldn't put up with that. Are there other ways to avoid the fee?

Any direct deposit occurring in the month that is $250 or more will also waive the fee.

Re: not paying balance with no minimum due

Follower — Thu, 15 May 2025 15:44:16 GMT

@villemiami wrote:
After seeing your messages saying that I would pay interest, I decided to pay the remaining balance using my Bank of America checking account. Does using a Bofa account make the payment post faster on a Bofa credit card or is there no difference if I use a bank account from another bank?

Even though the transaction is completed by now, I'll also answer OP villemiami's question "Does using a Bofa account make the payment post faster on a Bofa credit card or is there no difference if I use a bank account from another bank?"

I believe it will post faster; when I pay one of my BoA credit cars from my BoA checking account, there is an option to set the day of the payment/transfer as today. If I do that, the payment will process overnight and be credited to the card the next day. (It works on weekends, too.)

And BoA may be changing their systems; just recently I noticed a payment made in the morning posted to the card that night around 9 p.m.

So definitely faster than an ACH payment from another bank.