Apple Card Payments

[SFLSpotter9210]

This is a eduacational story about GS or Apple Card account holders. This just occurred to me a few hours ago. So i paid my statement balance which was 1607.99 for purchases made. And in June i had 58.00 in charges that i made just a side note i had a purchase of 5.00 made on June the 21st also. They charged me 23.00 of interest due to the fact that I didn't pay the additional charges of 57.00 for the month of June. So i ask the CSR agent is there a grace period and they explained no there isn't that your charged interest on a daily basis and if you don't pay your entire bill at the end of each month that you will be charged interest according to your interest rate. Now does everyone know that this is the case that GS doesn't provide a grace period at all? 

Is everyone aware of this cause surely I wasn't aware of such. I'm going to have to dig up my card agreement and see if that is actually the fact. Please can someone else fill me in if that has also happened to them as well. Thanks in advance for all your input. Hope everyone is staying safe and healthy. 

[NRB525]

Apple Card definitely has a grace period. 

Did you have a balance at the end of May, not fully paid during June? If so, then an interest charge can be expected on July 1. 

When you pay the full balance, get the card back to zero, the interest will stop and grace period will be back. 

[K-in-Boston]

https://www.goldmansachs.com/terms-and-conditions/Apple-Card-Customer-Agreement.pdf

Your due date is at least 28 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance (adjusted for any financing plan) by the due date each month.

--

Without knowing your statement closing dates, due dates, statement balances, and payment amounts it's hard to pinpoint.  But if you paid less than your statement balance at any point before the due date, you lost your grace period on new purchases.

[SFLSpotter9210]

There is not grace period. Your due dates are the same date every month. This would be the last day of each month. Apple Card determines your interest each month based on your balance at the end of each day, including interest accrued during that month. Each day this amount is multiplied by 1/365th of your APR. For example, this daily rate is approximately 0.05% if overall APR is 17.99%. At the end of each month, the interest charges from each day are added to determine your monthly interest charge.

If you pay your monthly balance, Apple Card only charges interest until the day you pay your monthly balance. Or, if you pay your monthly balance each month, you can avoid paying interest entirely.

No grace periods. However this may not be the issue. After looking back I see there is trailing interest. meaning by paying your monthly balance, you stop additional interest from accruing. You were charged interest on your statement balance for the days until you fully pay off your statement balance. This is also known as ‘trailing interest charge’.

In order to avoid interest entirely, you need to pay your statement balance for two consecutive months. Apple Card only charges you interest until the day you paid your statement balance. Since you already paid your statement balance last month, if you pay your statement balance in full again this month, which already includes the trailing interest charge, you won’t be charged additional interest.

I purchased a iPad in April and made payments but didn't PIF until June. And all I had left was the purchases of 57 from June.  So had I known I would have paid the additional 57 and avoided the 23 in interest. I guess it's a learning experience for me huh? It was my bad cause I thought I had made the purchases in June meaning the iPad. 

[SFLSpotter9210]

My due date is the last day of every month. 

[Anonymous]

It sounds the same as how most credit cards work.

If one doesn't PIF in any billing cycle(even if you leave $0.01 unpaid), there's no grace period on this account anymore and any new purchases made after the billingcycle's due date will immediately start to accrue interest(usually daily balance method) until one PIFs in some other billing cycles in the future. After that new PIF, any new purchases will have the normal grace period again.

So, if you can help it, don't put any new purchases on cards that weren't PIF as they will not have the normal grace period.

[Anonymous]

---

@SFLSpotter9210 wrote:

There is not grace period. Your due dates are the same date every month. This would be the last day of each month. Apple Card determines your interest each month based on your balance at the end of each day, including interest accrued during that month. Each day this amount is multiplied by 1/365th of your APR. For example, this daily rate is approximately 0.05% if overall APR is 17.99%. At the end of each month, the interest charges from each day are added to determine your monthly interest charge.

If you pay your monthly balance, Apple Card only charges interest until the day you pay your monthly balance. Or, if you pay your monthly balance each month, you can avoid paying interest entirely.

No grace periods. However this may not be the issue. After looking back I see there is trailing interest. meaning by paying your monthly balance, you stop additional interest from accruing. You were charged interest on your statement balance for the days until you fully pay off your statement balance. This is also known as ‘trailing interest charge’.

In order to avoid interest entirely, you need to pay your statement balance for two consecutive months. Apple Card only charges you interest until the day you paid your statement balance. Since you already paid your statement balance last month, if you pay your statement balance in full again this month, which already includes the trailing interest charge, you won’t be charged additional interest.

---

The bolded bits are contradictory.   The card DOES have a grace period (like most cards except for some cards aimed at early rebuilders), if you pay the statement balance before the due date, you will not pay interest (basically what grace period means).  But, as you say, if you don't PIF in time, the grace period disappears.

[slickwidit]

this is good to know.... I always PIF... I spend maybe 2 to 300 a month on this card... but now knowing this I might think twice going foward. I always make sure it PIF when the charges "finally" post because they are not instant. I've never paid a cent of interest on it. 

This seems like a the same as Cap 1 in a sense. wow!