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Old 01-27-2018, 07:14 PM
 
2 posts, read 1,108 times
Reputation: 10

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This may seem like a very basic question, but I have never carried a balance on a credit card and I am not sure how this works.

I own a small business and a few months back things looked like they were slowing down a little more than I liked so to make sure that I had enough cash flow I did not pay off my company credit card bil like I usually do every month.

Things ended up being fine so I would like to pay it off. This is how it goes (I rounded the numbers to make it easier).

On Jan 18th the period closed and the total balance was $8,500.
Since then I have put another $2,000 on.
I will probably end up putting another $1,000 on it before I pay it.
On Feb 10th I will pay it, it is due on the 12th.

So my question is this: Can I just pay off the $8,500 and clear out any interest?

Or

Do I have to pay off every cent that is owed at that time, including the charges I made after the closing of the period on Jan 18th?

Thanks!
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Old 01-27-2018, 07:20 PM
Status: "Living the good retired life." (set 29 days ago)
 
Location: Wasilla, AK
5,877 posts, read 3,148,828 times
Reputation: 11862
As long as you pay off the statement balance on or before the due date, you will not have to pay any interest. I pay my cards online and I'm offered the option of paying the statement balance or the current balance. I normally choose the statement balance.
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Old 01-27-2018, 07:28 PM
 
2 posts, read 1,108 times
Reputation: 10
Ok, just to confirm, if I pay the statement balance of $8,500 by Feb 12th, I could leave the extra $3,000 I have put on since the closing of that statement period and pay no further interest?

Thanks!
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Old 01-27-2018, 07:37 PM
 
416 posts, read 171,044 times
Reputation: 534
Quote:
Originally Posted by TowerSupport View Post
Ok, just to confirm, if I pay the statement balance of $8,500 by Feb 12th, I could leave the extra $3,000 I have put on since the closing of that statement period and pay no further interest?

Thanks!
If you want to be 100% sure. Call the number on the back of your card and ask them. It's your $.
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Old 01-27-2018, 07:51 PM
 
Location: Aurora Denveralis
3,017 posts, read 1,023,325 times
Reputation: 3849
Quote:
Originally Posted by movedintime View Post
If you want to be 100% sure. Call the number on the back of your card and ask them. It's your $.
This. The amount only changes if you charge something or you reach a payment cycle end and they add on that cycle's interest.
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Old 01-27-2018, 08:21 PM
 
Location: Gettysburg, PA
1,565 posts, read 1,511,896 times
Reputation: 2755
The way my credit card works is that as long as I pay off the full amount on the statement balance (whatever amount is on there at the end of the billing cycle) then I am not charged interest. I imagine this is how most credit cards work (since they're supposed to be giving you "credit" meaning they don't make you pay right away). Yet, if you pay the $8,500 and for some reason the credit card company charges you interest, don't get mad at us! This is stuff you're supposed to know about when you signed up for the credit card.
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Old 01-29-2018, 10:14 AM
Status: "Living the good retired life." (set 29 days ago)
 
Location: Wasilla, AK
5,877 posts, read 3,148,828 times
Reputation: 11862
Quote:
Originally Posted by TowerSupport View Post
Ok, just to confirm, if I pay the statement balance of $8,500 by Feb 12th, I could leave the extra $3,000 I have put on since the closing of that statement period and pay no further interest?

Thanks!

Just to be on the safe side, I schedule my payment about five days before the due date. That way I know it will post before the due date. If you pay on the actual due date, it might not be credited to your account until a day or two later, giving your card company the excuse to charge you interest. But I pay the statement balance just before the due date ($8500 in your case), and I don't ever pay any interest, as the remainder will be part of my next bill.
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Old 01-29-2018, 11:09 AM
 
Location: Brawndo-Thirst-Mutilator-Nation
15,172 posts, read 15,210,720 times
Reputation: 10887
Call customer-service for an accurate payoff-amount.
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Old 01-29-2018, 05:52 PM
 
Location: Cebu, Philippines
2,183 posts, read 800,407 times
Reputation: 4348
My statement always has two balances on it: Balance due by due date, and current balance (including recent purchases). If I pay of the balance due by due date, no interest accumulates on the amount over that called current balance.
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Old 01-30-2018, 07:06 AM
 
Location: Annandale, VA
9,449 posts, read 7,600,059 times
Reputation: 6002
Quote:
Originally Posted by AlaskaErik View Post
Just to be on the safe side, I schedule my payment about five days before the due date. That way I know it will post before the due date. If you pay on the actual due date, it might not be credited to your account until a day or two later, giving your card company the excuse to charge you interest. But I pay the statement balance just before the due date ($8500 in your case), and I don't ever pay any interest, as the remainder will be part of my next bill.
The better way is to schedule the payment using the credit card issuers site instead of your own banks billpay site. That way you get credit for the payment the same day. No issue with bank delay in posting the payment.
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