fees? on BCE

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Postby takeshi » Fri Aug 22, 2014 1:21 pm

CarefulBuilder14 wrote:I'm going to let a small balance ($100) report on the BCE each month for scoring purposes

You never need to carry a balance for scoring purposes. You want one to report. You can have a balance report and pay in full.

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Postby CarefulBuilder14 » Fri Aug 22, 2014 1:25 pm

Bama87 wrote:I have never heard of that. I can tell you for a fact that is not how Discover or Capital One do business, so I doubt AMEX would try that.

I am with djreaz on this one. I think that amount just escaped you.

I'm looking at my BCE Rates and Fees Table (also called a Schumer Box?) and it says they won't charge interest "if you pay your entire balance by the due date each month". There is no mention about penalties if you make multiple payments. So I guess multiple payments are okay, so long as they total the amount due on the statement before the due date.

The records from previous months would be helpful, but I agree it sounds like the interest and finance charges are just due to paying less than the balance on the statement produced in mid-June.

So a residual finance charge isn't the same as 'living and growing' interest? It is just interest on purchases (and a little interest on interest) that comes with a grace period to pay? You don't pay less on a residual finance charge by paying before the due date? But you could be charged interest on a late payment on a residual finance charge?

I use the BCE a lot and the $100 reporting will be week-old transactions so I won't be carry the same charges as a balance month to month - just paying them off and replacing them with new grocery purchases.
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Postby Luxe » Sun Aug 24, 2014 1:24 am

Having a balance report to the credit agencies and carrying a balance are two different things. I think this is clear to most people here but just to explain to anyone who isn't sure:

If you use your credit card normally throughout the month and don't pay it until you receive a statement (think back to when statements were delivered over snail mail and you'd send back a check), your balance is reported to the credit agencies but you do NOT owe any interest. Your reported balance affects your credit utilization and also goes on your credit report. This is OK, financially responsible, and even recommended to show your card is active.

If you don't pay the full balance listed on your statement, you will carry it over to the next statement AND pay interest on it. This is unnecessary for your credit report and often expensive unless you have 0% APR. Don't do this unless you know what you are doing. Go buy some AXP stock instead if you want to give money to the credit card companies.

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