@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.
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.
