Hi all,
I am relatively new to the CC game.
My 'balance due' amount is $1050 (minimum payment of $30 due 7th July).
My 'current balance' however is around $5000.
If I pay the 'balance due' amount of $1050 by the due date, will my next statement incur interest charges?
Is it best to pay off the entire $5000 now?
Thanks! Hope this made sense!
What could you buy and resell that you wouldn't lose much money on? Would you be doing it for points?
Thanks!
why don't you ring your bank and ask them what the best option is? i'm sure they will be able to answer you on what the minimum is and if you will be charged interest.
my advice would to be to pay it off and cancel the card. cc's are bad if you can't control and budget your spending.
Budget isn't an issue I would just rather have more money in my interest account for as long as possible
It's a billing cycle. The other $3950 must have fallen into a new billing cycle so you only need to pay the $1050 stated on statement to avoid any interest charges.
Thanks!
Did you pay it in full last month?
If I pay the 'balance due' amount of $1050 by the due date, will my next statement incur interest charges?
No.
Pay the closing balance (wording varies slightly between banks). There should something like this on your statement (below from NAB):
To avoid paying interest on purchases, make sure you pay the "closing balance" in full by the due date each month
Ignore statements, it was how they used to report pre online days. Now it just triggers the minimum repayment, which is a default mechanism for the bank. By the time you get it the info is out of date.
Firstly track your cc online at all times, online will even tell you what the min repayment is at any given time and if you have satisfied it.
Secondly ensure that your card is paid off in full prior to the expiry of interest free period of the first purchase on the card. New purchases keep the period active even if you pay the old purchase off.
I had the same question when I first got a credit card. The answer is, if you pay off the balance as due on your credit card statement you avoid interest charges on that amount. So if you pay $1050 by the 7th of july, you will not have to pay interest on it. Next month you will get a statement for the remainder ($4950)
This of course opens the possibility of buying something, immediately reselling it at a small loss and then using the cash to pay off the bill. Which is what confused me about it at first.