Discover IT and daily interest

[sdotlow]

I just received my new cards when I got home from work last night (AMEX BCE / Chase Freedom / Discover IT).  It was like Christmas in July!

When reading through the paperwork that came with my Discover IT card, I noticed the daily APR.  I've tried to find information on how this works and could only find vague explanations.

If I'm using my Discover for gas, will I be charged interest on a daily basis for purchases I make as opposed to being able to pay the balance in full before the statement date?  Is there no way to duck the interest on this card?

[warofkraid]

I make multiple smaller payments per month and although sometimes my card reports a balance at the start of a new cycle (due to stuff not posting til the last day of the cycle usually), I have never paid 1 cent in interest.  As long as you pay off what you use it for before the grace period ends (I believe its 21 days or so), you shouldn't be charged any interest.

[sdotlow]

Ah, I guess I missed the 21 day grace period.  That makes sense.  I'll just be sure to pay it off weekly.

[staifokuzed]

I think the grace period is after statement cut. Also my understanding of interest calculated daily means adverage daily balance. For example you let balance of 300 on statement. You would have a balance of 300 with a min payment of 25 due. Say you pay 275 on the due date and carry a balance on the next statement. You would pay interest on almost the full 300. Not just the 25 left because of daily average balance. If u pay off full 300 by duedate not interest will be charged.