How to Cycle through Interest Free Periods with Credit Cards?

brendongl on 24/05/2018 - 14:48

Hello

I run a online eBay dropshipping business and use my credit cards to pay for my goods.
I generally pay for good with the credit card, then pay back the credit card within a good timeframe.
My credit cards are always in negative, but I don't pay any interest since I'm paying them back, but then using it again. Therefore resetting the interest free period, right?

I recently had to pay a one-off $5000 credit line due to the 2-year interest free period expiring, now i have to cycle multiple credit cards.
How can I do this effectively?
I am confused about the interest free periods/statement dates.
I have recently been charged small amounts of interest even though I cycle the entire amount of the line of credit within 55 days.
Can someone explain to me in my situation how I can effectively use statement dates and purchase dates to know EXACTLY when interest will occur?

Essentially I want to have to pay no interest charges.
I usually use my eBay fees to help with large amounts (eBay fees are charged once per month, and mine usually ends up being around $2000).
I have a $2k $8k and now $9k card at my disposal, and my average costs are $20k a month on inventory (but these are daily purchases usually betweeen $500 to $1000 day) and I get the same money in return add around 10% give or take.

Essentially, i just need to know how to i can schedule repayments correctly so i never get charged these interest fees.
Thanks in advanced!

Financial Credit Card Interest Free

Comments

  • redfox1200 on 24/05/2018 - 15:14
    +9

    just pay the closing balance on the statement by the due date

    • CheapskateQueen on 24/05/2018 - 19:14

      It's as simple as that.

    • brendongl on 24/05/2018 - 20:30

      I swear i always pay the closing balance on the statement, but there's been afew instances when i get charged interest.
      Will make sure to finalise each closing balance on the statement, thanks!

      • brendongl on 24/05/2018 - 20:33

        Actually.

        This isnt what im looking for, i dont have enough money to actually close the balance.
        I want to take advantage of the interest free periods…

        What you are saying is to pay the complete balance every statement, which isn't what i want to do, since i am cycling money thru the card…

        • robbyjones on 24/05/2018 - 20:41

          If you don't pay your balance off each month you don't have an interest free period as you pay interest on the whole amount owing. Each payment does pay off the oldest amount owing (or does with most credit cards) not the most recent purchases and this does make a difference if you pay more than the previous months balance owing. Confusing, I know, I suggest you discuss your options with the bank. Perhaps utilising multiple credit cards could be your answer.

  • Youfah Mizzum on 24/05/2018 - 15:20

    Each cc has a monthly statement, right?
    And each statement has a total balance, right?
    And each statement arrives in the mail/email at least 3 weeks before due date, right?

    So as each statement arrives, just check the total balance due and schedule in the repayment a couple of days prior to due date.
    It's just a small bit of manual work to log into your online banking and adjust the scheduled amount.

  • Cheapskate Paul on 24/05/2018 - 21:09

    You can set up a direct debit with your CC provider. They will automatically take the full amount owing (if you set it up that way) on the due date each month. As long as you have the required funds in your bank account you will never pay interest.

  • singingwolf on 24/05/2018 - 21:34
    +5

    Look at the dates for each card the statement is cut. And the base your spend on the cards that have just gone past that date. For example:

    Card 1 statement comes out 2nd of month
    Card 2 comes out 10th of months
    card 3 comes out 20th of month
    card 4 comes out 25th of month

    Any expenses between the 2nd and 9th go on card 1
    Any expenses between 10th and 19th go on card 2
    Any expenses between the 20th and 24th go on card 3
    Any expenses between 25th and 1st of next month go on card 4,

    I used to do this. It was a pain in the ass, but works.

    My wife hated it. So eventually went back to 1 card like normal people and just try and delay big payments towards the end of the card month to a day after the statement comes out.

    • MathNerd on 31/05/2018 - 21:49

      Professional.

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