Payments made between due date and statement date

[NYC_Fella]

Stupid question.

Say my statement cutoff date is the 27th and the payment due date is the 19th. I have a balance due of $500) from my last statement and also have current new charges of $200 (all hypothetical numbers). If I make the minimum payment of $50 by the 19th and then PIF the remaining statement balance of $450 by the 26th, leaving a current new balance of $200, would I still be charged interest on the $450 that was technically "late"?

[Horseshoez]

Short answer, "Yes".

[MorPtsPls]

Yes.

In order to not pay interest you must pay the full statement amount by the due date which is the 19th in your example.

[Anonymous]

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@NYC_Fella wrote:

would I still be charged interest on the $450 that was technically "late"?

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Others have answered this but a minor point:   nothing is technically (or otherwise) "late" here.   

To be late, you have to have sent less than the minimum payment (which is most cases probably means not sending a payment at all) before the due date.   Then you may get a late fee, in addition to the interest which you are being charged in this case too.

[NYC_Fella]

Thanks for the responses.

I hate my Apple Card (it seems to be an orphan now at GS) but I love the fact that its payment due date and statement cutoff date are the same; i.e., the last day of the month. It's the only CC I know of that has this feature.

[IsFiveCardsEnough]

I think most cards put the due date a few days before the statement cut date to ensure that any on-time payment posts and appears on the statement, even if the payment takes time to post.

Apple/GS's system is probably designed to post in real-time, plus you're paying the bill online, so they can have the due date and statement cut the same date.

[NYC_Fella]

But in this day and age, payments should post instantaneously. There's no need for a buffer period. It's just an artifact which allows issuers to charge extra interest.

[Zoostation1]

@NYC_FellaIt varies significantly from lender to lender.  My Discove payments usually take 2-3 days before it says my payment posted.  It'll still be backdated to the date I inititated it if before the cutoff time, otherwise the following day).  Capital One usually will update my available credit the same day, but will take 1-2 days to show posted and backdates as expected.  Amex updates everything same day.  I've also noticed that when I makle an payment to Amex, it seems to leave my checking account faster than my other lenders.

[Anonymous]

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@Zoostation1 wrote:

@NYC_FellaIt varies significantly from lender to lender.  My Discove payments usually take 2-3 days before it says my payment posted.  It'll still be backdated to the date I inititated it if before the cutoff time, otherwise the following day).  Capital One usually will update my available credit the same day, but will take 1-2 days to show posted and backdates as expected.  Amex updates everything same day.  I've also noticed that when I makle an payment to Amex, it seems to leave my checking account faster than my other lenders.

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I think @NYC_Fella knows that, the point was the with electronic transfer (ACH for example) it should be possible for everything to be near-real-time.   (I pay Chase, who gets realtime acknowledgement that this money is in my account, deducts it and sends it to Chase, who can immediately credit it).  I think that things like paper checks can create real delays, and there is probably some fraud possibilities involving race conditions etc but in general things could move much faster

[OpenBook55]

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@NYC_Fella wrote:

But in this day and age, payments should post instantaneously. There's no need for a buffer period. It's just an artifact which allows issuers to charge extra interest.

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Tell that to Capital 1. I made a payment to my savor one card directly from a cap one account and they still decided to ut a 4 day hold on the payment and available credit..  4 DAYS for essentially an internal transfer !!! RIDICULOUS