A newbie question

[DigitalArk]

What exactly does it mean by carrying a balance? Does it mean spend more money after the statement cuts?

For example, I have spent $1,200, the statement due day is 8/3/2013 with $1,000 full and $20 minimum.

So if I pay the full statement balance $1,000 and the remaining $200 will be reported as a balance to the credit bureaus, right?

Now, the $200 will not be charged for interests, correct?

But, if I pay only $500, will the interests only apply to the remaining $500 on the statement or the rest of the $700 for total spending?

[coldnmn]

If the statement balance is a $1000 and you pay the $1000 by the due date you will not be charged interest on the $200 remaining.  If you pay $500 you will be charged interest on the $700 and any new purchases. The $200 was after the closing date so it will be on the next statement and not figured on the current one. The portion of the unpaid balance from the balance due now makes all future charges owing interest until paid in full. YMMV you will have to check your paper work or call customer service to be sure.

[CBTS]

Not paying the statement balance in full by the due date means carrying a balance.

[coldnmn]

Correct as far as I know. If the $200 wasn't part of the statement you wouldn't have to pay that until the next statement and there would be no interest on that if the previous statement was paid in full.

[DigitalArk]

Thank you all for the responses. It is still hard for me to understand the balance concept.

Can anyone tell me how to leave a 1-9% balance on a credit card by using the following:

Credit Limit: 14,000

Total spending: $1340

Statement Balance: $1140

Due Date: 08/12/2013

Bank reports to credit bureaus date: 08/19/2013 (7 days after the closing day)

In order to make sure the bank reports only 0 balance to the credit bureaus,

do I need to make sure not to spend any more money after the statement cut off date, which is 08/12/2013?

[myjourney]

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@DigitalArk wrote:

Thank you all for the responses. It is still hard for me to understand the balance concept.

Can anyone tell me how to leave a 1-9% balance on a credit card by using the following:

Total spending: $1340

Statement Balance: $1140

Due Date: 08/12/2013

Bank reports to credit bureaus date: 08/19/2013 (7 days after the closing day)

In order to make sure the bank reports only 0 balance to the credit bureaus,

do I need to make sure not to spend any more money after the statement cut off date, which is 08/12/2013?

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CL 3000

balance 275 or less