multimillionaire wrote:
Hi everyone;
Let's say someone has a credit card with following:
$500 revolving balance (meaning the paid minimum the previous month) with minimum payment due on 17th of the month
On the 1st of the month they PIF so now the balance is only the interest accumulated since the statement was cut
On the 20th of the month they charge $100 on the cc...
New statement is cut on the 23rd of the month with the new balance of $110.00 (10 for the interest from previous balance) due on the 17th of the next month.
Let's say they charge $500 on the 25th...and PIF ($110 but not the $500) before the 17th of the month...will they be charged interest on the $500 or will they not have to pay the interest because they PIF the previous balance?
Thank you for any info you can help you can give me on this.
The statement that closed on the 23rd (let's say July 23) is due on August 17. If paid in full by August 17, then no finance charges will be added to the account
$500 is charged on July 25. This will be included on the statement that will close on August 23. The payment for this statement will not be due until September 17. If this $500 balance is paid in full by September 17, then no finance charges will apply.
This is all assuming that the credit card has a grace period for purchases.
If the $500 is not paid in full by September 17, then finance charges will added according to the method of calculation by the credit card company (e.g. average daily balance x daily periodic rate).
