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I've got a few questions so instead of seperate posts, I will just ask them here.
Sorry for all the questions but I am still trying to get my head wrapped around all of this. Thanks
A word of advice with your Discover card: Always PIF on that card. If you carry any kind of balance from the previous month, Discover charges daily residuals on your purchases from the date of purchase. They are really sneaky that way and you'll end up paying way more interest than you should, especially since their minimum interest charge is $2.00.
@lithium78 wrote:A word of advice with your Discover card: Always PIF on that card. If you carry any kind of balance from the previous month, Discover charges daily residuals on your purchases from the date of purchase. They are really sneaky that way and you'll end up paying way more interest than you should, especially since their minimum interest charge is $2.00.
I do plan on pif each month. Now when I got the card, I have 0% interest until Dec. 2013 so I should not incur any charges for bigger purchases that may take a month or two to pay right? I don't really plan on making a big purchase but I may near Christmas time.
@lithium78 wrote:A word of advice with your Discover card: Always PIF on that card. If you carry any kind of balance from the previous month, Discover charges daily residuals on your purchases from the date of purchase. They are really sneaky that way and you'll end up paying way more interest than you should, especially since their minimum interest charge is $2.00.
Don't pretty much all credit cards work this way? I don't think that's unique to Discover.
@Walt_K wrote:
@lithium78 wrote:A word of advice with your Discover card: Always PIF on that card. If you carry any kind of balance from the previous month, Discover charges daily residuals on your purchases from the date of purchase. They are really sneaky that way and you'll end up paying way more interest than you should, especially since their minimum interest charge is $2.00.
Don't pretty much all credit cards work this way? I don't think that's unique to Discover.
Most credit cards only charge interest for the balance you've accrued by the statement date. If you pay it off before the statement date, then you don't have to pay interest. Discover charges interest by the day throughout the month if you are carrying a balance from the previous month and their minimum interest charge is $2.00. Another card that does that is Credit One Bank and that's a pretty bad card. Discover is a great card, but you never want to carry a balance on it if you can avoid it.
@lithium78 wrote:
@Walt_K wrote:
@lithium78 wrote:A word of advice with your Discover card: Always PIF on that card. If you carry any kind of balance from the previous month, Discover charges daily residuals on your purchases from the date of purchase. They are really sneaky that way and you'll end up paying way more interest than you should, especially since their minimum interest charge is $2.00.
Don't pretty much all credit cards work this way? I don't think that's unique to Discover.
Most credit cards only charge interest for the balance you've accrued by the statement date. If you pay it off before the statement date, then you don't have to pay interest. Discover charges interest by the day throughout the month if you are carrying a balance from the previous month and their minimum interest charge is $2.00. Another card that does that is Credit One Bank and that's a pretty bad card. Discover is a great card, but you never want to carry a balance on it if you can avoid it.
All credit cards do this if I am understanding you correctly.
If I run up a balance of $1,000, and I pay $100 of it off by the due date and carry the balance, I will be paying interest backdated to the date of original purchase on all $1000 dollars of that (including the $100 I paid afaik) with any credit card.
And Discover only charges a $0.50 minimum interest charge, not $2.00
From discover more application T&Cs
How to Avoid Paying Interest on Purchases | Your due date is at least 25 days after the close of each billing period (at least 23 days for billing periods that begin in February). We will not charge you any interest on purchases if you pay your entire balance by the due date each month. |
Minimum Interest Charge | If you are charged interest, the charge will be no less than $0.50. |
@jsucool76 wrote:
@lithium78 wrote:
@Walt_K wrote:
@lithium78 wrote:A word of advice with your Discover card: Always PIF on that card. If you carry any kind of balance from the previous month, Discover charges daily residuals on your purchases from the date of purchase. They are really sneaky that way and you'll end up paying way more interest than you should, especially since their minimum interest charge is $2.00.
Don't pretty much all credit cards work this way? I don't think that's unique to Discover.
Most credit cards only charge interest for the balance you've accrued by the statement date. If you pay it off before the statement date, then you don't have to pay interest. Discover charges interest by the day throughout the month if you are carrying a balance from the previous month and their minimum interest charge is $2.00. Another card that does that is Credit One Bank and that's a pretty bad card. Discover is a great card, but you never want to carry a balance on it if you can avoid it.
All credit cards do this if I am understanding you correctly.
If I run up a balance of $1,000, and I pay $100 of it off by the due date and carry the balance, I will be paying interest backdated to the date of original purchase on all $1000 dollars of that (including the $100 I paid afaik) with any credit card.
And Discover only charges a $0.50 minimum interest charge, not $2.00
From discover more application T&Cs
How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing period (at least 23 days for billing periods that begin in February). We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $0.50.
You don't seem to understand what I am saying. Most credit cards will not charge you interest if you pay off your entire balance by the statement date. With Discover, if you have a balance from the previous month, then for the next month they will charge you interest on any balance you accrue by the day, even if you pay off the entire balance before the end of the month. And, yes, the minimum interest charged is $2.00, because that's what they charged me as minimum interest when I carried a balance from the previous month. (Although they refunded the interest as a goodwill gesture to me.)
@lithium78 wrote:
@jsucool76 wrote:
@lithium78 wrote:
@Walt_K wrote:
@lithium78 wrote:A word of advice with your Discover card: Always PIF on that card. If you carry any kind of balance from the previous month, Discover charges daily residuals on your purchases from the date of purchase. They are really sneaky that way and you'll end up paying way more interest than you should, especially since their minimum interest charge is $2.00.
Don't pretty much all credit cards work this way? I don't think that's unique to Discover.
Most credit cards only charge interest for the balance you've accrued by the statement date. If you pay it off before the statement date, then you don't have to pay interest. Discover charges interest by the day throughout the month if you are carrying a balance from the previous month and their minimum interest charge is $2.00. Another card that does that is Credit One Bank and that's a pretty bad card. Discover is a great card, but you never want to carry a balance on it if you can avoid it.
All credit cards do this if I am understanding you correctly.
If I run up a balance of $1,000, and I pay $100 of it off by the due date and carry the balance, I will be paying interest backdated to the date of original purchase on all $1000 dollars of that (including the $100 I paid afaik) with any credit card.
And Discover only charges a $0.50 minimum interest charge, not $2.00
From discover more application T&Cs
How to Avoid Paying Interest on Purchases Your due date is at least 25 days after the close of each billing period (at least 23 days for billing periods that begin in February). We will not charge you any interest on purchases if you pay your entire balance by the due date each month. Minimum Interest Charge If you are charged interest, the charge will be no less than $0.50. You don't seem to understand what I am saying. Most credit cards will not charge you interest if you pay off your entire balance by the statement date. With Discover, if you have a balance from the previous month, then for the next month they will charge you interest on any balance you accrue by the day, even if you pay off the entire balance before the end of the month. And, yes, the minimum interest charged is $2.00, because that's what they charged me as minimum interest when I carried a balance from the previous month. (Although they refunded the interest as a goodwill gesture to me.)
I'm not following what it is that you are saying Discover does that is different than other card companies. Can you give an example with date of purchase, date of statement, due date, and how much you paid and when, and how much interest gets charged?