When does CC interest start accruing?

[McNugget]

My February cc statement was $0.  I charged a small amount in the following weeks, so March statement had a balance.  

When does interest start accruing?  Payment is due 04/06.  Do I need to PIF before charging anything else to avoid trailing interest?  

I'm so confused. 

Note:  I have already paid the bill in full.  Just trying to figure out how this all work. 

[Anonymous]

There is a grace period minimum of 25 days where new purchases don’t accrue interest on most cards (only subprime cards tend to sometimes have no grace period). Check your card terms. 

Basically as long as you pay the statement balance every month, you will never pay interest. 

[Remedios]

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@McNugget wrote:

My February cc statement was $0.  I charged a small amount in the following weeks, so March statement had a balance.  

When does interest start accruing?  Payment is due 04/06.  Do I need to PIF before charging anything else to avoid trailing interest?  

I'm so confused. 

Note:  I have already paid the bill in full.  Just trying to figure out how this all work. 

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Had you not paid in full, the interest on remaining balance would  start accruing on 04/07.

You dont need to PIF before new charges, you only need to pay entire statement balance by the due date. New charges will be included in the next statement period.  

[GApeachy]

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@Remedios wrote:

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@McNugget wrote:

My February cc statement was $0.  I charged a small amount in the following weeks, so March statement had a balance.  

When does interest start accruing?  Payment is due 04/06.  Do I need to PIF before charging anything else to avoid trailing interest?  

I'm so confused. 

Note:  I have already paid the bill in full.  Just trying to figure out how this all work. 

---

Had you not paid in full, the interest on remaining balance would  start accruing on 04/07.

You dont need to PIF before new charges, you only need to pay entire statement balance by the due date. New charges will be included in the next statement period.  

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Do the ccc report the balance on the stmt or the balance at that moment?  Trying to do Azeo

[GApeachy]

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@McNugget wrote:

My February cc statement was $0.  I charged a small amount in the following weeks, so March statement had a balance.  

When does interest start accruing?  Payment is due 04/06.  Do I need to PIF before charging anything else to avoid trailing interest?  

I'm so confused. 

Note:  I have already paid the bill in full.  Just trying to figure out how this all work. 

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I'm so glad you asked this, I was pif several times cuz I wasn't sure either.

[McNugget]

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@Remedios wrote:

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@McNugget wrote:

My February cc statement was $0.  I charged a small amount in the following weeks, so March statement had a balance.  

When does interest start accruing?  Payment is due 04/06.  Do I need to PIF before charging anything else to avoid trailing interest?  

I'm so confused. 

Note:  I have already paid the bill in full.  Just trying to figure out how this all work. 

---

Had you not paid in full, the interest on remaining balance would  start accruing on 04/07.

You dont need to PIF before new charges, you only need to pay entire statement balance by the due date. New charges will be included in the next statement period.  

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Perfect!  Thank you!

[Remedios]

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@GApeachy wrote:

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@Remedios wrote:

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@McNugget wrote:

My February cc statement was $0.  I charged a small amount in the following weeks, so March statement had a balance.  

When does interest start accruing?  Payment is due 04/06.  Do I need to PIF before charging anything else to avoid trailing interest?  

I'm so confused. 

Note:  I have already paid the bill in full.  Just trying to figure out how this all work. 

---

Had you not paid in full, the interest on remaining balance would  start accruing on 04/07.

You dont need to PIF before new charges, you only need to pay entire statement balance by the due date. New charges will be included in the next statement period.  

---

Do the ccc report the balance on the stmt or the balance at that moment?  Trying to do Azeo

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Most report statement balance at closing. US Bank reports last day of the month, regardless of statement day. Chase reports statement balance, plus any time account is brought down to $0.00 

[Anonymous]

That’s been my experience

[UpperNwGuy]

But if you don’t pay the statement balance in full, you might (depending on your card) trigger “trailing interest.”  Google that phrase to learn more.

[Anonymous]

One way to think about it (for most cards anyway) is

1) Interest accrues from the day the purchase posts (most issuers use average daily balance)

2) BUT:  if you PIF before due date, the accrued interest is waived.   

This accounts for trailing interest etc, the interest is always potentially there, just waived if you meet the terms, and not otherwise.