If you have no balance on the cc, you will not have interest charged unless we are talking about a cc with no grace period. For example, X cc has a zero balance, you decide to charge $200 for airline tickets. If you let the $200 report as a balance on your statement AND only pay $100 you will be charged interest. Same scenario but this time you PIF - no interest.
Anytime you use your cc their is a minimum payment due. I'm not sure what you mean by 'wouldn't I have to try to charge it all to avoid the minimum payments?'
If you use the cc and do not PIF, you are req to pay the minimum pyt in order to keep the account in good standing and avoid late fees.
Are you talking about a cc with no grace period?
Anytime you use your cc their is a minimum payment due. I'm not sure what you mean by 'wouldn't I have to try to charge it all to avoid the minimum payments?'
If you use the cc and do not PIF, you are req to pay the minimum pyt in order to keep the account in good standing and avoid late fees.
Are you talking about a cc with no grace period?
I'm not sure what you mean by 'wouldn't I have to try to charge it all to avoid the minimum payments?'
The lady told me that I have minimum payments every month whether or not I buy anything. Perhaps I'll post some numbers so I won't sound so confusing (I'm confused enough).
Balance-$299.72
Available credit- $200.28
Payment due- 7/4/2013
I've already paid it and I always pay before the due date, however, I always have to pay an interest charge. I figured as long as I pay the bill on time, I wouldn't have an interest charge, but that's not the case. Is having the $299.72 balance mean that I will have interest charge and a minimum payment no matter what? Perhaps that's the question I needed to have asked. Thanks for all the help from you all so far.
If you do not pay in full before the end of the grace period, then you will have interest charges. The way those charges are calculated vary by lender, but often it is by average daily balance method.
Paying ONLY the minimum balance will mean you will ALWAYS have interest charges. You need to pay more to eliminate interest.
ETA: fittiger beat me to it. +1 to that advice - your credit will improve with another account of your own. The other user on that card appears to be carrying a balance, which is causing interest to accrue for both of you.
But you should start a new thread with information on your credit profile to see what kind of card the forums recommend. Just remember to listen for a number of responses, and don't rush into anything. Sometimes it takes a full day for posters to notice and reply to a post.
Paying ONLY the minimum balance will mean you will ALWAYS have interest charges. You need to pay more to eliminate interest.
ETA: fittiger beat me to it. +1 to that advice - your credit will improve with another account of your own. The other user on that card appears to be carrying a balance, which is causing interest to accrue for both of you.
But you should start a new thread with information on your credit profile to see what kind of card the forums recommend. Just remember to listen for a number of responses, and don't rush into anything. Sometimes it takes a full day for posters to notice and reply to a post.
I would suggest getting your own card, maybe a secured card since you don't already have one of your own; especially if you aren't planning on getting a mortgage until next summer. If you do go the secured route, find one that offers conversion to a unsecured account after so much time of good ownership. Having your own credit card on your credit reports would look better and any decrease in score caused by app'ing and having a new account will have gone away by then and maybe even boosted your score as long as you use it responsibly, keep utilization down below 10-15%, etc.
This card already appears on my credit report. My concern is applying for one that only has my name on it. If it wouldn't affect my score negatively, I'd get one.
Keep the account balance less than 15%, pay in full every month when the statement closes and you will never have to worry about a minimum payment or accrued interest.
Okay, so for example, I get a new card for $500. If I charge $75, pay the $75 before the due date, there would be no minimum payment or interest? And since you say keep it less than 15%....................................I'll just let you explain that part so my other question won't sound too dumb.
For example, X cc has a zero balance, you decide to charge $200 for airline tickets. If you let the $200 report as a balance on your statement AND only pay $100 you will be charged interest.
But the thing is that I'd pay the full $200 and it STILL seems I'm paying some sort of interest. I've paid interest ever since my name was added to the card. This is why I'm not fan of credit cards, but since my credit history is limited, I'm using one to help my score and history.
I'm reading this article that says some card companies require you to pay all charges in full every month, but come with no finance charges or maximum limits. Perhaps this is what I need?
" For example, X cc has a zero balance, you decide to charge $200 for airline tickets. If you let the $200 report as a balance on your statement AND only pay $100 you will be charged interest.
But the thing is that I'd pay the full $200 and it STILL seems I'm paying some sort of interest. I've paid interest ever since my name was added to the card. This is why I'm not fan of credit cards, but since my credit history is limited, I'm using one to help my score and history. "
You are likely still paying interest because there are 2 people on the card. The balances are added together and the account holder might not be paying in full.
But the thing is that I'd pay the full $200 and it STILL seems I'm paying some sort of interest. I've paid interest ever since my name was added to the card. This is why I'm not fan of credit cards, but since my credit history is limited, I'm using one to help my score and history. "
You are likely still paying interest because there are 2 people on the card. The balances are added together and the account holder might not be paying in full.
Sounds like you are the authorized user on someone else's CC, and that you are making all the payments while they just keep
charging more and although the bill gets paid it justs get added to again and you are paying interest on the unpaid balance,
sounds like someone is taking advantage of you, if they are charging they need to pay their own bill. unless this is something
you agreed to, just saying, reading in between the lines, good luck
