cancel
Showing results for 
Search instead for 
Did you mean: 

Question about charging right before end of cycle and having to pay interest

tag
abberration
New Member

Question about charging right before end of cycle and having to pay interest

Hi, everyone

 

I have a Discover card that the cycle ends on the 17th. I just paid off the existing balance today and I want to charge something fairly expensive, but I am afraid it will post like the 16th or 17th and I will have to pay interest on it. I read about grace periods, but it's confusing and I think it has more to do with paying the bill late. So far this month, it's had at least $1000 on it and I want to put $400 more on it. If I do charge today, will I have to pay interest on the total $1400 of purchases for the month? Or would I pay interest on just the $400? Do purchases so close to the end of the billing cycle even count? Or should I just wait until the 15th because charges usually hold for about 3 days before they appear on the card?

 

I made a payment right at the end of the cycle last month and carried a balance and had to pay about $35 in interest. I don't want to repeat that.

 

Thanks!

Message 1 of 4
3 REPLIES 3
MrDisco99
Valued Contributor

Re: Question about charging right before end of cycle and having to pay interest

If you pay the full balance before the due date (typically 3-4 weeks out from statement cut) then you shouldn't have to pay interest on any of it.

EDIT: Some (awful) cards chardge interest on current month.  What kind of card is it?

Message 2 of 4
abberration
New Member

Re: Question about charging right before end of cycle and having to pay interest

Upon further investigation, I believe I have the answer. Because of last month's goof, I think I will have to pay interest on purchases made this month. I will keep a zero balance for another month to regain the grace period.

 

Thanks!

Message 3 of 4
Anonymous
Not applicable

Re: Question about charging right before end of cycle and having to pay interest

Even if you had a "blunder" last month, if I'm understanding correctly... you just recently paid off the existing balance (down to $0) which would have nullified any possibility of interest being charged.

 

For instance, if you charge $500 and you end up with a statement balance of $500 on the 17th when it cuts, you have until the 12th (estimating) of next month to pay off that statement balance. If you make a payment(s) totaling at least the statement balance by the due date (12th) you don't pay any interest. on those charges.

 

So, let's say you had a statement balance of $500, paid that total amount by the due date, but charged $650 between now and then... you will have a new statement balance of $650 on the 17th of next month with another 25 days to pay that amount before accruing interest.

 

The grace period is basically the date between the statement cut date, and the payment due date. (17th statement cut date, and 12th payment due date of the following month). I'm unsure of what the exact circumstance was with the previous interest charge, but you should not be charged any interest as you already paid the statement balance (and then some, likely). That $400 should be safe.

 

If you did in fact pay down to $0 recently, you should be safe charging however much you want to without worrying about the statement balance, as you have until the following due date to avoid interest charges.

 

If that is unclear, feel free to ask more questions. I remember when I wasn't totally understanding of cc's and thought that I was going to be charged interest instantly on any statement balance that was cut on that same date, so I paid everything the moment it posted. That of course is a good mentality to have, but isn't necessary to avoid interest. 

Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.