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Logistics of paying in full a charge card?

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kremonis
Regular Contributor

Logistics of paying in full a charge card?

I am thinking about applying for the Cap1 Spark Cash Plus charge card. Never had a charge card before and understand they must be paid in full by the closing date and there is no grace period.

 

How do you know how much to pay if you have several charges in pending state 2-3 days before the charge cards closing date? You won't know if the charges will post before or after the closing date. This would affect how much you need to pay back.

Message 1 of 5
4 REPLIES 4
SouthJamaica
Mega Contributor

Re: Logistics of paying in full a charge card?


@kremonis wrote:

I am thinking about applying for the Cap1 Spark Cash Plus charge card. Never had a charge card before and understand they must be paid in full by the closing date and there is no grace period.

 

How do you know how much to pay if you have several charges in pending state 2-3 days before the charge cards closing date? You won't know if the charges will post before or after the closing date. This would affect how much you need to pay back.


1. This post should be in Business Credit, since it's a business card.

2. There's no need to pay the balance before the statement. You pay it after the statement comes out and before the due date. You just need to pay the statement balance.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 703 TU 704 EX 687

Message 2 of 5
sccredit
Valued Contributor

Re: Logistics of paying in full a charge card?


@SouthJamaica wrote:

@kremonis wrote:

I am thinking about applying for the Cap1 Spark Cash Plus charge card. Never had a charge card before and understand they must be paid in full by the closing date and there is no grace period.

 

How do you know how much to pay if you have several charges in pending state 2-3 days before the charge cards closing date? You won't know if the charges will post before or after the closing date. This would affect how much you need to pay back.


1. This post should be in Business Credit, since it's a business card.

2. There's no need to pay the balance before the statement. You pay it after the statement comes out and before the due date. You just need to pay the statement balance.


This. Whatever the total due from the statement is, that is what you pay.

Message 3 of 5
pizzadude
Credit Mentor

Re: Logistics of paying in full a charge card?

Agree with the above posts.   Also if you decide to apply please report back on whether this card shows on your personal reports, there's been speculcation that their Spark Charge Card does NOT report but I don't recall any recent confirmations on this. 

 

As far as I know all other Cap1 Spark cards will show on your personal reports. 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 4 of 5
fm92555
Regular Contributor

Re: Logistics of paying in full a charge card?

It will create a statement on a specific date just like any other credit card. Then you are given a certain number of days to pay that statement off in full. Any charges that have posted before the statement date will be included on that statement. Otherwise they will post to the next months statement. 

 

So in reality you get the time between when you make the charge and the time of the due date for the statement that the charge appears. As an example you could have your statements cut on the 5th of every month and is due on the 25th of the month. Then you make a charge on the 6th of June for $100.00. In this example, the statement for that $100 will not cut until the 5th of July and not be due until the 25th of July.

 

So the effective difference is that the statement balance must be paid in full compared to a credit card that you only need to make a minimum payment and you can carry the remaining balance over to the next billing period.  

 

I love charge cards and they are a great way to get in the habit of paying off your bills and not getting in a lot of debt.  Hopefully the habit makes people realize not to spend more than you can pay.

Message 5 of 5
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