I was not charged interest?

[FixMyCredit1992]

My Discover card is secured, so it did not come with a promo rate of 0% APR.

As I understand it, if you pay your card down to zero, or a low amount, once the statment "cuts", which is 8/20 for me, that balance is subject to interest.

Well this month..did not have enough to pay in full, but I did pay half of it it off. About $150 was on the balance when the statement cut yesterday.

Oddly enough, it says purchase APR is 22.9%, but it says "Balance subject to interest" is 0.00.

Can anyone explain this?

[mongstradamus]

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@FixMyCredit1992 wrote:

My Discover card is secured, so it did not come with a promo rate of 0% APR.

As I understand it, if you pay your card down to zero, or a low amount, once the statment "cuts", which is 8/20 for me, that balance is subject to interest.

Well this month..did not have enough to pay in full, but I did pay half of it it off. About $150 was on the balance when the statement cut yesterday.

Oddly enough, it says purchase APR is 22.9%, but it says "Balance subject to interest" is 0.00.

Can anyone explain this?

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Is it your first month with the card , they usually give you an grace period ?

[ILBrian]

Its subject to interest on the following statement

Cycle 8/1 $0 Interest 0

Cycle 9/1 $150 Interest 0

Cycle 10/1 $150 Interest 2.75

Estimated numbers

[jsucool76]

So you have $150 on the balance when the statement cut...You have until your payment due date to pay that balance in full to avoid interest. If you pay only the minimum by that due date, then anything left over is subject to your interest rate and will accrue interest. 

IE: I spend $500 on my credit card

Statement cuts 8/21 with a balance of 500$

Minimum payment is due on say...9/15

If I make a payment of $500 by 9/15, I accrue no interest, because I paid in full. 

If I make the minimum payment (we'll say it's $25) by that date, then I am CARRYING a balance of $475, which will accrue interest the entire time, and which I will be added onto my balance when my next statement cuts. 

[newhis]

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@FixMyCredit1992 wrote:

My Discover card is secured, so it did not come with a promo rate of 0% APR.

As I understand it, if you pay your card down to zero, or a low amount, once the statement "cuts", which is 8/20 for me, that balance is subject to interest.

Well this month..did not have enough to pay in full, but I did pay half of it it off. About $150 was on the balance when the statement cut yesterday.

Oddly enough, it says purchase APR is 22.9%, but it says "Balance subject to interest" is 0.00.

Can anyone explain this?

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People in this forum usually pay by statement cut to report almost all cards at $0 for score purposes. If you PIF by due date (the balance reported) then you will not be subject to interest.

[FixMyCredit1992]

So the statment cut does not effect interest, just scoring?

So in other news, if I pay in full by the due date, no interest is charged?

[Involver]

Tis the season to be jolly,

Trollolololol, lolololol.

[wHiTeSoL]

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@FixMyCredit1992 wrote:

So the statment cut does not effect interest, just scoring? Eh

So in other news, if I pay in full by the due date, no interest is charged? Yes there will be no interest. 

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You need to understand the fundamentals and it'll all make sense.

Lets just say your "statement period" is July 1st - July 31st. You "statement" cuts on the 31s just means it's the end of the spending period. You then get a due by date; lets just say it's August 25th (most credit cards nowadays say no interest for atleast 25 days as a grace period). As long as you pay off what you spent during all of july by the 25th of august there is no interest.  If you dont pay it off, and only pay half, then when your next "statement" cuts on the 31st of august you will owe interest on what you didn't pay. 

[09Lexie]

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@Involver wrote:
Tis the season to be jolly,

Trollolololol, lolololol.

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