@Paranoid wrote:I have a question. I have been using credit cards for more than three years, and always paid in full the balance of the statement, never paying interest. I wanted to figure out what would happen if I did not pay the full balance of the statement by the due date.
If I’ve always paid earlier and had grace period active, at some point I don’t pay the last bill in full by the due date, from what exact moment does the interest begin to accrue? From that exact payment due date? Or from the first day of the current billing cycle?
And the second question - having lost the grace period, and having a situation with interest accrual. What is the necessary condition for interest to cease to accrue? If at some point I pay the last bill in full before the due date, from that exact moment when CCC receives the payment, the interest ceases to accrue?
Read the fine print of your credit card agreements since they can have exceptions to billing policies.
Generally speaking, if you PIF on or before your "Due Date", you pay no interest.
Interest begins to accrue the day after your due date normally. (But the bank may say they must receive your payment by a certain time to post the same day. So maybe after 8 p.m., for example, you'll be paying "late".)
Interest should stop accruing the day your payment is posted to pay off your outstanding balance.
The "billing cycle" dates are separate from when interest stops and starts.
If you want to calculate how much interest you are paying, divide the annual APR % by 12 to get a monthly rate.
So for example 21.00% expressed as 0.21 / 12 = 0.0175 on a monthly basis.
If your balance is $1000 and you carry it the full month, you would pay $17.50 per month in interest.
If you pay it off mid-month, prorate the charges by approximate number of days.
I thought this thread would be about the exact moment of the start and stop of the internet
We went through this in excruciating detail in your other thread.
Let the balance post and find out. If you still have the question after the last thread, you need to experience it to understand it. The amounts of interest expense will not be significant. The learning will be priceless.
Let the balance post and find out. If you still have the question after the last thread, you need to experience it to understand it. The amounts of interest expense will not be significant. The learning will be priceless.
It is the same answer as when your promotion interest rate ends. The existing balance, and any futures charges added to the card are charged / calculated for daily interest.
It has already been explained but because you don’t have the context of experience, it is not registering for you.
Thus, you need to let a balance post to experience the interest cost. It is not painful.
It has already been explained but because you don’t have the context of experience, it is not registering for you.
Thus, you need to let a balance post to experience the interest cost. It is not painful.
