how do you stop the interest once you had to not PIF one month

[Anonymous]

I have a Chase Freedom card - I love it for the rewards. I always pay it off and just collect the rewards, but was unable to do so last month (xmas debt). So I had to pay a little interest.

What do I have to do to stop the interest from accruing - (card uses average daily balance)

As soon as I PIF the account (will be able to do so before next due date), does the 'cycle of interest' stop? In other words, can I start new purchases knowing I will not pay interest as long as I keep paying the balance each month? Or do I need to wait until a statement cuts showing I paid more than the previous month's balance?

Bottom line: how do I stop more interest from accruing. Please help me

[Anonymous]

In case it's important or if it clarifies, my 2 charges that were not in categories were a hotel stay and a pizza at a sit-down pizza/pasta-shop. I do see that these do NOT clearly fit into any of the categories mentioned. So I think I answered my own question - "not all purchases fit into a category" - but I would like to hear that I have made the correct conclusion or not from others. Thanks.

[Anonymous]

Please ignore the previous post, it was intended for another thread. Woops! I would still like an answer to the OP. Thanks!

[Anonymous]

bump

[Anonymous]

PIF the statement balance before the due date.

The only wrench I know of is if any of your cards use two-cycle billing.

[Anonymous]

Will there still be some interest then on the next statement (accrued up until the date that you PIF)? I assume yes.

[Anonymous]

Not if you've payed everything before your grace period.  I think chase stopped doing double cycle billing last year.

[Anonymous]

I've experienced this several times with USAA and Wamu (I normally PIF), and in my experience paying the balance down to zero at any point ended all interest accrual with USAA (and I'm pretty sure with WAMU too).  The next statement still included interest, reflecting charges up to the point I zero'd the account, though, but the cycle of interest free (PIF-before-due-date) usage that I was accustomed to resumed.

They should specify in their terms and conditions exactly what you must do to zap the interest and get back to your accustomed interest free usage.  I'm sure different banks can create their own policies. 

[Anonymous]

This isa question best sked of the utomer service fepartmnt of the card issuer. 

[CreditAble]

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@Anonymous wrote:
bump

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If you pay your statement in full, even if there are interest charges from previous statement balances, you would then be entitled to the usual interest free grace period for your following month's purchases.

The additional amount of interest accrued between your statement closing date and the date you Pifed the balance will be added to your following month statement. That is called trailing interest.

Trailing interest does not disqualify you from receiving your interest free status on charges made following the Pifed statement.

I confirmed my above stated understanding with a Chase CSR. She added that if there was any additional interest added to the second subsequent statement, it would only be based upon the small trailing interest charges. No interest will be charged for purchases following the statement you Piffed.

You can call your Chase CSR and verify the policy for yourself.

Message Edited by CreditAble on 01-12-2009 12:07 PM