CC Payment Help

[Anonymous]

I have a few questions regarding payments for CC's.

1. Say my balance was $125.00 and the minimum due was $15.00 and I paid $50.00 before the due date. (Couldn't PIF right away because of an emergency repair on the car.) But a week later I paid the remaining balance... so now I have a zero balance. Will I still have an interest charge?

2. Is it okay to pay the way I did or will they be mad I made two payments in two weeks?

[Anonymous]

1.) If your balance was $125 and your payment was due, let's say, on September 10th. If before the due date, let's say September 8th, you paid $50, then $50 would be applied towards your balance, leaving a balance of $75 remaining on your card. Then, starting on the 11th you start paying interest on the balance. If you paid the remaining $75 on September 15th, one week after you made the $50 payment, you would pay interest for the 12th, 13th, 14th and so on until your payment posted. Interest is calculated based on your average daily balance, so when your next statement cuts they'll take:

$75 * However many days you carried the balance / 30. Then they'll multiply that by your APR and divide it by 12. In other words, you're paying a few cents in interest, unless you have an insane APR.

2.) Some credit card companies don't like it if you pay more than once and some of the really subprime ones even charge you extra for it. The vast majority of them don't have a problem with it though.

What card is this and who is it issued by?

*If anyone reading this sees that I'm mistaken about anything above, please feel free to correct me

Message Edited by jaybird201 on 09-18-2008 11:56 AM

[Anonymous]

Orchard - secured.

Right now it is the only card I have.

[score_building]

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Pappy214 wrote:

Orchard - secured.

Right now it is the only card I have.

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good rebuilder card

it won't be the only card you have for long if you keep up the good work

[Anonymous]

No worries, you're fine. As long as you make the minimum payment on-time you won't run into any problems. Orchard Bank doesn't usually have any problem with multiple monthly payments.

I do know that a little while back there were complaints about their practicing universal default. (Jacking up your interest rates if you have unsatisfactory accounts with other creditors). I'm not sure if they still practice it. It sounds like you're being good with paying on-time and as much as possible, so keep up the good work! An unsecured card shouldn't be too far away if you treat the Orchard Bank Secured well.

[Anonymous]

Thanks, I am treating it well. I never go over 20 percent. (I know I should stay under 10 but it is difficult with a small limit card)

[Anonymous]

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jaybird201 wrote:

2.) Some credit card companies don't like it if you pay more than once and some of the really subprime ones even charge you extra for it. The vast majority of them don't have a problem with it though.

Message Edited by jaybird201 on 09-18-2008 11:56 AM

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Wow, I have never heard of CC companies having problems when you pay more than once.  I am currently paying my CC debt off and whichever card I am focusing on gets paid about 4 times a month, corresponding with my paychecks, until it is paid off.  To my knowledge, I don't have any subprime cards, though I could be wrong since I'm not really sure what is and isn't subprime.  But I'm just shocked by the idea that there are CC companies that get miffed if you pay more than once.

[Anonymous]

I have read on these boards that there are some who get miffed if you PIF. They don't make enough money off of you and they don't like it.

[Anonymous]

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woopah wrote:

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jaybird201 wrote:

2.) Some credit card companies don't like it if you pay more than once and some of the really subprime ones even charge you extra for it. The vast majority of them don't have a problem with it though.

Message Edited by jaybird201 on 09-18-2008 11:56 AM

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Wow, I have never heard of CC companies having problems when you pay more than once.  I am currently paying my CC debt off and whichever card I am focusing on gets paid about 4 times a month, corresponding with my paychecks, until it is paid off.  To my knowledge, I don't have any subprime cards, though I could be wrong since I'm not really sure what is and isn't subprime.  But I'm just shocked by the idea that there are CC companies that get miffed if you pay more than once.

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I've heard it briefly mentioned on the fourms before though I can't recall which companies they were talking about. I was thinking more of some subprime cards I know of that get bothered by that. I did a study for work on some predatory subprime lenders and came across a handful of companies that do it. It's pretty disgusting that there are companies out there that do that...