topic Re: Finance charge on $0 balance after large sum paid? in Credit Cards

Finance charge on $0 balance after large sum paid?

lolabelle — Wed, 04 Nov 2009 04:56:58 GMT

Does this make sense? I have no minimum finance charge on this card, so should be $0 where there is no balance. Last month, I had a large balance. I paid it in full on 10/15 (before the last payment was due). Statement closing date was 11/2. Payment due date is 11/29. Today I receive a bill for a finance charge of $31 and change. What am I missing?

Re: Finance charge on $0 balance after large sum paid?

Anonymous — Wed, 04 Nov 2009 05:50:18 GMT

@lolabelle wrote:
Does this make sense? I have no minimum finance charge on this card, so should be $0 where there is no balance. Last month, I had a large balance. I paid it in full on 10/15 (before the last payment was due). Statement closing date was 11/2. Payment due date is 11/29. Today I receive a bill for a finance charge of $31 and change. What am I missing?

Was the balance revolved?

Re: Finance charge on $0 balance after large sum paid?

lolabelle — Wed, 04 Nov 2009 06:00:37 GMT

Thanks for the response. I'm not sure what that means. The statement says:

Previous balance = $5,300

Purchases and Adjustment = 0

Periodic Rate Finance Charges = $31.01

Days in Billing Cycle = 32

Closing Date = 11/02/09

Payment Due Date = 11/29/09

On statement, it says Payment of $5,300 was made on 10/16, bringing account to $0 balance.

Re: Finance charge on $0 balance after large sum paid?

Anonymous — Wed, 04 Nov 2009 10:17:07 GMT

@lolabelle wrote:
Thanks for the response. I'm not sure what that means. The statement says:

Previous balance = $5,300
Purchases and Adjustment = 0
Periodic Rate Finance Charges = $31.01
Days in Billing Cycle = 32
Closing Date = 11/02/09
Payment Due Date = 11/29/09

On statement, it says Payment of $5,300 was made on 10/16, bringing account to $0 balance.

btw, welcome to the forum.

Did you pay in full i.e. pay the statement balance of the previous month before the due date?

Re: Finance charge on $0 balance after large sum paid?

Anonymous — Wed, 04 Nov 2009 14:24:13 GMT

@lolabelle wrote:
Thanks for the response. I'm not sure what that means. The statement says:

Previous balance = $5,300
Purchases and Adjustment = 0
Periodic Rate Finance Charges = $31.01
Days in Billing Cycle = 32
Closing Date = 11/02/09
Payment Due Date = 11/29/09

On statement, it says Payment of $5,300 was made on 10/16, bringing account to $0 balance.

The previous statement would have closed about 10/2/09 and the payment due at that time included interest through 10/2.

The $31.01 on the 11/2 statement would be interest accrued on the balance from about 10/2 until your payment on 10/16 ...

Re: Finance charge on $0 balance after large sum paid?

Anonymous — Wed, 04 Nov 2009 15:27:17 GMT

the grace period expires on the due date ,t if there any balance the statement balance left you pay for the whole cycle or if PIF current cycle but did not the last one. you pay number of days in the current cycle till PIF, so if PIF on day 10 you will pay for 9 days on the next statemt, but you will gave your grace period back

Re: Finance charge on $0 balance after large sum paid?

lolabelle — Wed, 04 Nov 2009 17:06:05 GMT

Ah, okay. That makes sense. Thanks very much for the responses!