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## Chase Freedom, points, interest, and grace periods. Oh My!

Valued Contributor

## Re: Chase Freedom, points, interest, and grace periods. Oh My!

@dragontears wrote:

Ok so you would be making the charge before the end of the month and having your statement cut on 10/6, you will start being charged interest if you don't pay in full by 11/3.

To estiamte the amount of interest take your APR and divide by 12 then multiple by the balance (it is slightly more complicated calculation as CC use average daily balance method and APR divide by 365 multiply by days in the billing cycle)

So number example, using an APR of 24% to make the math easier:

24%/12=2%

\$535*2%=\$10.70

Hope that helps

You're a saint. My APR is 14%. I got a total interest amount of ~\$6.24. Definitely worth it to pay a little interest and rack up the UR's in this case. Thank you for writing out the math in a way a math-illiterate person like me can understand.

"Show your thanks with action! Hit the "Kudos" button (the stripe with the star) for every post you find helpful to show your appreciation to the community of great individuals who help you on these forums" -Me

Active Cards: Chevron Texaco, Amex BCE, Barclays Ring, Chase Freedom, Chase Freedom Unlimited, Best Buy Visa, Marvel MCMust garden until 2/1/2022 to hit my goal AAOA.
Message 11 of 14
Epic Contributor

## Re: Chase Freedom, points, interest, and grace periods. Oh My!

@SecretAzure wrote:

@dragontears wrote:

Ok so you would be making the charge before the end of the month and having your statement cut on 10/6, you will start being charged interest if you don't pay in full by 11/3.

To estiamte the amount of interest take your APR and divide by 12 then multiple by the balance (it is slightly more complicated calculation as CC use average daily balance method and APR divide by 365 multiply by days in the billing cycle)

So number example, using an APR of 24% to make the math easier:

24%/12=2%

\$535*2%=\$10.70

Hope that helps

You're a saint. My APR is 14%. I got a total interest amount of ~\$6.24. Definitely worth it to pay a little interest and rack up the UR's in this case. Thank you for writing out the math in a way a math-illiterate person like me can understand.

Remember that that calculation is for one month, three months would be more.

Message 12 of 14
Established Contributor

## Re: Chase Freedom, points, interest, and grace periods. Oh My!

Beware that you lose the purchase protection that the Chase Freedom offers if you load your Amazon balance in order to purchase the PS5. Instead of purchasing the PS5 directly. Freedom as an extra year of warranty. 1st batch of PS5s could be problematic in the long run.

Also seems to be a misconception about Chase and giftcards here. Chase has no problem with people buying "closed loop" giftcards which cannot be redeemed or exchanged for cash.  Amazon balance is closed loop. It cannot be exchanged or refunded for cash. Chase doesn't care.

Message 13 of 14
Epic Contributor

## Re: Chase Freedom, points, interest, and grace periods. Oh My!

@Credit12Fico wrote:

Beware that you lose the purchase protection that the Chase Freedom offers if you load your Amazon balance in order to purchase the PS5. Instead of purchasing the PS5 directly. Freedom as an extra year of warranty. 1st batch of PS5s could be problematic in the long run.

Also seems to be a misconception about Chase and giftcards here. Chase has no problem with people buying "closed loop" giftcards which cannot be redeemed or exchanged for cash.  Amazon balance is closed loop. It cannot be exchanged or refunded for cash. Chase doesn't care.

Well, the underlying issue is that with uncapped cards, buying giftcards that can be liquidated for cash allows you to repeat the cycle, gaining an unlimited amount of high % rewards.    With the Freedom category capped at \$1,500 per quarter, Chase really isn't going to be very concerned what you buy.

Message 14 of 14
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