What matters (interest) - the actual due date, or the actual date the new statement is cut?

[Anonymous]

Which date really matters concerning calculation of interest owed - the printed due date, or the actual date that the statement is cut?

In other words, I paid the minimum payment very early. I then paid the remainder of the amount of this current statement between the due date and when the new statement is cut. What should I expect? Is this in-between time some sort of grace period?

[Anonymous]

If you didn't pay the whole balance before the due date, then I'm guessing you will have a little interest left over to pay.  You will want to see when the statement cuts how much that is.

[Anonymous]

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@Anonymous wrote:

Which date really matters concerning calculation of interest owed - the printed due date, or the actual date that the statement is cut?

In other words, I paid the minimum payment very early. I then paid the remainder of the amount of this current statement between the due date and when the new statement is cut. What should I expect? Is this in-between time some sort of grace period?

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According to the information I've gotten on my cards, you have the pay the total amount of the new balance prior to the due date to avoid interest charges.  In some instance, depending on the card, if you have carried a balance for a while and PIF prior to the due date, you will still have interest charged.  

[haulingthescoreup]

The statement date is only relevant to those of us who play the FICO util game. It has nothing to due with when your payment needs to reach the lender to avoid incurring interest.

[Anonymous]

Outside of the grace period. Interest is calculated on a daily bases.

[Anonymous]

OK - a few days of interest then shouldn't hurt me too much. I was PIF before this month too.

I'm curious - Why don't creditors  cut the statement on the due date, then? Why wait?

[Anonymous]

The "Truth to Lending Act" requires creditors to provide a grace period from the statement closing date to the due date to provide you the time to make a payment without incurring any penalties.

[Anonymous]

By this do you mean a grace period from defaulting, resulting in fees and/or APR increases - rather than interest? It sounds like there is no protection from the interest, right? (Not that I am claiming I am due any such protection - I just want to understand all of the rules of the 'game') Thanks!

[Anonymous]

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@Anonymous wrote:

By this do you mean a grace period from defaulting, resulting in fees and/or APR increases - rather than interest? It sounds like there is no protection from the interest, right? (Not that I am claiming I am due any such protection - I just want to understand all of the rules of the 'game') Thanks!

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The grace period is meant to keep you from defaulting.

[Anonymous]

got it - makes sense - thank you!