Full Pay Off Query

[Anonymous]

This will seem pretty basic or obvious to most of you, but I couldn't find this specific thing after a little Googling. I'm wanting to pay off my credit cards every month to avoid interest. People obviously use their card(s) between the time they receive a statement/bill and when it's actually due. So do I just need to pay the statement amount to avoid interest, or does the account balance need to be absolute zero when the due date rolls around? I'm assuming the former, but I just want to be sure. Thanks.

[Anonymous]

Hi there.  Most cards have a grace period and you would want to read your CC's account disclosure info for the specifics for your account.  In the meantime, here is a good primer on Credit Card Grace Periods.  http://www.consumerismcommentary.com/credit-card-grace-period/

It sounds as though many cards have been slowly shrinking the grace periods so be sure you know the exact timeframe that you have.

[Anonymous]

But as long as you pay the statement balance by the due date, there will be no finance charges.

[MarineVietVet]

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@Anonymous wrote:

Hi there.  Most cards have a grace period and you would want to read your CC's account disclosure info for the specifics for your account.  In the meantime, here is a good primer on Credit Card Grace Periods.  http://www.consumerismcommentary.com/credit-card-grace-period/

It sounds as though many cards have been slowly shrinking the grace periods so be sure you know the exact timeframe that you have.

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Now I'm not naive enough to think that some companies won't try and do this or are doing it already but this is not supposed to happen because of 2 provisions of the Credit Card Act 2009:

Statements must be mailed at least 21 days ahead of when they are due.

Your credit card bill will now be due on the same calendar day every month.

I agree that it's up to all of us to be aware of any changes the CCC's try and slip past consumers.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

I'm assuming the grace period is between the statement date and the due date. Is this correct? Basically my question was if I could still have a balance on the account and not accrue interest as long as I paid the statement amount by the due date.

[MarineVietVet]

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@Anonymous wrote:
I'm assuming the grace period is between the statement date and the due date. Is this correct? Basically my question was if I could still have a balance on the account and not accrue interest as long as I paid the statement amount by the due date.

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Hi there.

You are correct in both your assumptions.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[JagerBombs89]

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@Anonymous wrote:
This will seem pretty basic or obvious to most of you, but I couldn't find this specific thing after a little Googling. I'm wanting to pay off my credit cards every month to avoid interest. People obviously use their card(s) between the time they receive a statement/bill and when it's actually due. So do I just need to pay the statement amount to avoid interest, or does the account balance need to be absolute zero when the due date rolls around? I'm assuming the former, but I just want to be sure. Thanks.

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FOR INSTANCE:

• Lets say you let a $500 balance report on your statement. 
• You have a grace period of 25 days. 
• You charge $750 somewhere between your balance statement date and your grace period.

You only have to pay $500 of that (now) $1250 balance to avoid interest charges.  Now if you let the $750 report on the following statement, you have to make a payment of AT LEAST $750 to avoid any interest charges.  This is one way to let a balance report every month (be sure all your other cards report $0 for optimal scoring ) and accrue $0 in interest.  This is how I get around interest anyways, so my effective APR is always 0%

[Anonymous]

That's what I was thinking and you guys confirmed for me. Thanks =)