@Anonymous wrote:Ok this is the first time carrying a balace over to the next month instead of PIF (emergency) so a bit confused on where the insterest starts. I'll try and make this understandable.lol
Nov-Decmber 10th Statement closed with $3200 due
Dec 12th had to charge another 2300
(brought it up to 5500)
Dec 14 Paid $1200
Down to $4300 owed.
~~~
So my question is does my payment go toward the Nov-Dec statement (thus making it only $2000 carried from Nov-Dec)? Even thought I put new charges on it.
OR the $1200 payment goes to new charges? (Meaning on Jan 10th interest is charged from the whole original $3200)
Thanks! sorry if this sounds counfusing~ If my explaination was bad lmk!
Homeskillz ^_^
Your statement closed with $3200 due. I assume no interest was charged on that statement, since the previous cycle was paid in full. So the question is what interest going forward.
You probably have a minimum payment due around Jan. 7, with a statement Jan. 10. If you don't pay the entire $3200 by Jan. 7, interest will be charged on the average daily balance from Dec. 10 to Jan. 10.
The extra $2300 charged won't matter until the Jan-Feb statement cycle. Since it was charged after the Dec. statement cut. So you have $2000 remaining statement balance. If you pay that by Jan. due date, no interest.
p.s. the payment goes to the previous statement's balance.
@Bman70 wrote:
@Anonymous wrote:Ok this is the first time carrying a balace over to the next month instead of PIF (emergency) so a bit confused on where the insterest starts. I'll try and make this understandable.lol
Nov-Decmber 10th Statement closed with $3200 due
Dec 12th had to charge another 2300
(brought it up to 5500)
Dec 14 Paid $1200
Down to $4300 owed.
~~~
So my question is does my payment go toward the Nov-Dec statement (thus making it only $2000 carried from Nov-Dec)? Even thought I put new charges on it.
OR the $1200 payment goes to new charges? (Meaning on Jan 10th interest is charged from the whole original $3200)
Thanks! sorry if this sounds counfusing~ If my explaination was bad lmk!
Homeskillz ^_^
Your statement closed with $3200 due. I assume no interest was charged on that statement, since the previous cycle was paid in full. So the question is what interest going forward.
You probably have a minimum payment due around Jan. 7, with a statement Jan. 10. If you don't pay the entire $3200 by Jan. 7, interest will be charged on the average daily balance from Dec. 10 to Jan. 10.
The extra $2300 charged won't matter until the Jan-Feb statement cycle. Since it was charged after the Dec. statement cut. So you have $2000 remaining statement balance. If you pay that by Jan. due date, no interest.
p.s. the payment goes to the previous statement's balance.
Ahh yeah Bman70! Sorry omitted a bit of information. ^_^
Oh great!!! Thanks for the explation for that part.. Much Domoz!
Second question, does a balance transfer work the same way? Say I do a BT of $1500 to citi DC. On Jan 7th-ish, Interest would be charged on the $500 remaning?
(not that I would just leave 500. Just for example 
)
~
@Anonymous wrote:
@Bman70 wrote:
@Anonymous wrote:Ok this is the first time carrying a balace over to the next month instead of PIF (emergency) so a bit confused on where the insterest starts. I'll try and make this understandable.lol
Nov-Decmber 10th Statement closed with $3200 due
Dec 12th had to charge another 2300
(brought it up to 5500)
Dec 14 Paid $1200
Down to $4300 owed.
~~~
So my question is does my payment go toward the Nov-Dec statement (thus making it only $2000 carried from Nov-Dec)? Even thought I put new charges on it.
OR the $1200 payment goes to new charges? (Meaning on Jan 10th interest is charged from the whole original $3200)
Thanks! sorry if this sounds counfusing~ If my explaination was bad lmk!
Homeskillz ^_^
Your statement closed with $3200 due. I assume no interest was charged on that statement, since the previous cycle was paid in full. So the question is what interest going forward.
You probably have a minimum payment due around Jan. 7, with a statement Jan. 10. If you don't pay the entire $3200 by Jan. 7, interest will be charged on the average daily balance from Dec. 10 to Jan. 10.
The extra $2300 charged won't matter until the Jan-Feb statement cycle. Since it was charged after the Dec. statement cut. So you have $2000 remaining statement balance. If you pay that by Jan. due date, no interest.
p.s. the payment goes to the previous statement's balance.Ahh yeah Bman70! Sorry omitted a bit of information. ^_^
Oh great!!! Thanks for the explation for that part.. Much Domoz!
Second question, does a balance transfer work the same way? Say I do a BT of $1500 to citi DC. On Jan 7th-ish, Interest would be charged on the $500 remaning?
(not that I would just leave 500. Just for example
~
OK if you're talking about making a payment via balance transfer, to your card with $2000 remaining statement balance.. yes the transfer would reduce the remaining statement balance to $500. (Statement balance is different from actual balance. You only have to pay the statement balance in full to avoid interest.)
Interest is only charged on the day of statement. So you have until Jan 10 to pay all of it. The payment is usually due 3-4 days before statement, because payments can take that long to post.
Say you did the transfer on Dec. 25. On January 10, they will calculate: $3200 statement balance for 4 days. (Then paid $1200.) $2000 statement balance for 11 days. (Then transferred $1500.) $500 balance for 16 days (transfer date to Jan. statement date).
3200x4=12800, 11x2000=22000, 16x500=8000. So you have $42800 sum of average daily balances. Divided by statement cycle (let's say 29 days): $1475.86 average daily balance.
So if you have 14% interest rate: About $16 in interest on Jan. 10 statement.
(0.14 APR divided by 365 for daily rate = 0.0003835. Multiplied by 29 for days in cycle = 0.011123. Multiplied by daily avg daily balance $1475.86 = $16.42 interest. Fun! Lol)
Did I do that right people? I might have screwed it up, not enough espresso yet this morning.
Edit: typo
@Anonymous wrote:
@Bman70 wrote:
The extra $2300 charged won't matter until the Jan-Feb statement cycle. Since it was charged after the Dec. statement cut. So you have $2000 remaining statement balance. If you pay that by Jan. due date, no interest.Are you sure about that? On many cards, don't you lose the grace period if you don't PIF. so OP WILL be charged interest on that $2300. (Barclays may be one of the exceptions that handles it nicely)
Yeah he didn't PIF the Dec. 10 statement balance. He will be charged interest on the average daily balance between statements. IF he doesnt finish paying off the statement balance ($3200) before the next statement.
I'm fairly sure (is that like 100% maybe? lol) that any charges made after the statement date aren't assessed until the next statement. Which then get their own grace period going forward from that.
First statement, if partially paid as in this example will not have interest.
At at the close/print of statement 2, however, the beginning balance, transactions up or down, all get included in the daily interest calculations for that 2nd statement.
And once the interest is triggered on, everything going forward is subject to interest unless it is a 0% purchase or 0% BT (or specific rate for either of those) until the balance is brought down clearly to zero, and ideally left at zero for a week, then pay any trailing interest on the statement.
I would suggest everyone go through a couple months experiment with letting $75 carry over, add new charges, pay minimum payment, see the interest post, then pay it down to zero to get the interest to stop, just so you understand the mechanics. We can talk about it here, a lot, but there's nothing quite like a little direct experience to understand this important part of credit activity.
@NRB525 wrote:First statement, if partially paid as in this example will not have interest.
At at the close/print of statement 2, however, the beginning balance, transactions up or down, all get included in the daily interest calculations for that 2nd statement.
And once the interest is triggered on, everything going forward is subject to interest unless it is a 0% purchase or 0% BT (or specific rate for either of those) until the balance is brought down clearly to zero, and ideally left at zero for a week, then pay any trailing interest on the statement.
I would suggest everyone go through a couple months experiment with letting $75 carry over, add new charges, pay minimum payment, see the interest post, then pay it down to zero to get the interest to stop, just so you understand the mechanics. We can talk about it here, a lot, but there's nothing quite like a little direct experience to understand this important part of credit activity.
Good suggestion.. I've done a bit of that myself.. somehow got the idea that purchases subsequent to the last statement don't get counted as a "balance" until they've been reported as a statement balance. Because when they say "average daily balance" they mean the statement balance, right? I think I'll call actually and ask one of my banks about that.... Google didn't get me a quick answer.
Well Discover seemed to concur with what NRB is suggesting.. if you didn't pay your entire statement balance, then you get charged interest on the remaining statement balance + any charges made on top of it. That's what I get for PIF my statement balance every month.. no opportunity to analyze interest amounts. :-P