Understanding CC payments

[Lucid08]

Hi all,

I wanted to ask how revolving credit works in terms of payments, statement dates, and due dates. I realize each company has its own policies and processing mechanisms, but I have a question surrounding the above:

1). If my statement date cuts on, say, the 3rd of the month, my due date would be the 28th considering the 25 day grace period for my card. Now, if I make a payment on the 1st of the month, 2 days before my statement -cut- date, and I do not PIF on the 1st, come the 3rd when my statement cuts I will be billed a minimum payment based on my remaining balance. My question: Even though I made a payment before my statement cut, but did not PIF, am I required to make a payment sometime between the 3rd and the 28th?

I just dont ever want to be late, and I plan on paying much more than the minimum each month, just not a full PIF. I'm just uncertain as to how things work regarding the above.

Message Edited by Lucid08 on 08-27-2008 11:53 PM

[Anonymous]

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Lucid08 wrote:

My question: Even though I made a payment before my statement cut, but did not PIF, am I required to make a payment sometime between the 3rd and the 28th?

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With almost every credit card out there, the answer to this will be yes.  You will have a new minimum payment due based upon your balance at the statement cut date. 

There used to be some credit cards that would count a payment over the minimum towards your next month's payment, but I haven't heard of anyone doing this in years.

[Anonymous]

well if your revolving Then you should pay ASAP as soon as you have payment due in order to reduce the Daily Average Balance as much possible and you can NOT prepaid several months in advance. you have to make a payment every cycle , if in doubt double check if you have a minimum payment due, if you don't and make the payment away, that's fine, it will lower the AVB and save you some money , just remember you have meet you Monthly obligation yet.

[Anonymous]

That's a hard question.

Yes and no.
Your right yeah CC companies have different policies some may say no cause you all ready made a payment and some might say yea cause they would add that to the last month. So instead of making two payments you paid one big one.

Best advice call the CC company and ASK. Never be late. Capital one charges $39 for a late fee. That's where your payment it going to. SO you would pay the 39 plus the MIN.

[Lucid08]

Great Info all!

The reason I asked this question is because I'm salaried and get paid on the 15th and 1st of every month, and I would like to use my banks automated online billpay to pay my CC's around the 1st of each month. I've got myself setup to where all of my utilities, groceries and general living expenses come out of my 15th paycheck no later than the 18th of each month.

I'm trying to get myself setup to where I dont have to -remember- to "mail" in a payment. I'm one of those individuals who would prefer that the online bill payments are done the closest to my actual payday, rather than a week or ten days out. It's not so much a discipline issue as it is of having that reassured feeling of knowing that all of my bills are paid by a certain date.

Gosh, I hope that makes sense!

[Anonymous]

almost all CCC's will alow you to change your due dates as well-

I have done this several times for cash flow purposes-

I pay the bulk of my bills twice a month- I paid bills yesterday/last night, the darn holiday could have messed up several of my payments-

[Lucid08]

Well, I just got my 2nd statement in from NFCU for my VISA account.

3 days before my August statement cut, I paid roughly 8X the amount shown in the July statements "minimum payment" due block. This current statement shows ZERO amount due in the current minimum payment block of the bill.

Apparently NFCU allows me to be paid ahead by 1 billing cycle. If I pay at least twice the current minimum balance shown on the current bill, my next bill will show a -zero- minimum payment due. Interest will continue to accrue on the outstanding balance, but making big payments like I'm doing will keep me from being late due to always being paid ahead by -one- month. This is great!

[Anonymous]

issues are doing away with this-

Sears comes to mind-

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Lucid08 wrote:

Well, I just got my 2nd statement in from NFCU for my VISA account.

3 days before my August statement cut, I paid roughly 8X the amount shown in the July statements "minimum payment" due block. This current statement shows ZERO amount due in the current minimum payment block of the bill.

Apparently NFCU allows me to be paid ahead by 1 billing cycle. If I pay at least twice the current minimum balance shown on the current bill, my next bill will show a -zero- minimum payment due. Interest will continue to accrue on the outstanding balance, but making big payments like I'm doing will keep me from being late due to always being paid ahead by -one- month. This is great!

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[Lucid08]

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Timothy wrote:

issues are doing away with this-

Sears comes to mind-

Ok, you completely lost me. Issues?

Are you saying the practice of allowing someone to be paid ahead by a month is a problem for some companies?

 

[Anonymous]

Yep- many are not allowing this anymore (pre-pay future min payments)

I think it's a combination of cash flow and the nudging to force customers to pay every month-

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Lucid08 wrote:

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Timothy wrote:

issues are doing away with this-

Sears comes to mind-

Ok, you completely lost me. Issues?

Are you saying the practice of allowing someone to be paid ahead by a month is a problem for some companies?

 

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