Morecards asked:
So let say i make a purchase of 300 Dollars today with a credit card, i got a month to pay the 300 dollars back? and if i don’t pay it back this month, can i just pay some of it? Can someone please give me a brief explanation of how that works. thanks
So let say i make a purchase of 300 Dollars today with a credit card, i got a month to pay the 300 dollars back? and if i don’t pay it back this month, can i just pay some of it? Can someone please give me a brief explanation of how that works. thanks
#1 by wyoind - December 30th, 2009 at 21:18
you just have to pay the minimum, but usually a good idea to pay more than the minimum
#2 by David L - January 1st, 2010 at 12:26
It depends on your billing cycle. For example, If you make a purchase of $300 today, and your billing cycle ends on the 13th, you will receive a statement showing a balance of $300 with a payment due of around $20 or $25. It will show a date that the payment is due. You can make the payment before the due date, or you can pay the balance in full to avoid further interest charges. Check your statement carefully each month and be sure to make your payments on time each month. You will build a good credit rating by doing that. Be careful not to over-extend yourself.
#3 by Journey - January 2nd, 2010 at 04:40
You typically get your ’statements’ every 30 days. If you purchase something on day 1 of the statement period then you have 30 days but if you purchase something in day 29 of the statment period you might only have a few days to pay it off. So it depends when you buy things.
Your CC will tell you the ‘minimum’ payment you can pay. You should atleast pay this to avoid getting a bad credit rating. If you dont pay all of it you’ll start to pay ‘finance charges’. However a 20% finance CC is only gonna add $6 to a $300 balance every month…..so not a big deal but when you start to get balances in the thousands (a lot of people do) then that finance fee goes to 60 and 100 and up and up every month.
#4 by mycreditapply - January 4th, 2010 at 22:39
Read your terms of service agreement with the credit card! Most credit cards have grace periods of around 25-30 days. Using your grace period to pay off any outstanding balance or at least the minimum payment amount due. Your credit card terms of service agreement will inform your of the minimum amount due.
This amount usually results in 3% of balance or $10-$15, whichever is greater.
By paying the minimum amount, allows you to build credit… However, do NOT miss a payment by even 1 day… try to pay off the minimum within 7 days after a purchase… it seems to help a credit score and credit report scores.
#5 by shiprepairwoman - January 7th, 2010 at 07:10
You get about 20 days from the statement date so if you charge near the end you may only have 20 days but if you charge right after the statement you could have 50 days.
You never need to pay interest if you pay it all off, if you pay most of it you will still pay a lot of interest because of two cycle billing. Never charge more than you can pay in full. Don’t charge near your credit limit a small fee can send you over the limit and start mounting fees.
You can build credit without paying interest.