Interest Charge Question

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
7 posts
darkguy2
Centurion Member
Centurion Member
 
Posts: 606
Joined: Thu Jan 24, 2013 12:24 am
Location: United States

Interest Charge Question

Postby darkguy2 » Wed Oct 23, 2013 7:59 pm

So I have had my student IT since the beginning of the year and have since lost my 0% intro rate. I do not understand when they start charging interest.So far I can buy items in one month, get my statement for that month, and not pay that statement till right before my next statement posts and I never get charged with any interest. It always says on my statement that there is $0 that will be charged interest. So am I just a lucky guy or am I not understanding something. Do I just have to pay off my previous statement balance before my new one posts to avoid interest?
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)


whit
Centurion Member
Centurion Member
 
Posts: 508
Joined: Tue Aug 13, 2013 10:04 pm
Location: ca

Postby whit » Wed Oct 23, 2013 9:23 pm

Depends, I don't think the student card is diff from the regular card in terms of how payments are processed

Are you saying you do not pay your statement in full by the due date? Because when statement cuts you are automatically starting the next month but only what's due when the statement cuts is what needs to be paid

Example, my discover card is used almost everyday because I put all my food purchases on it.

I spend say about 700$ and the statement cycle ends on the 5th, but it's due on the 19th and from the 5th to the 19th my balance has gotten up to around 900$/1000$. I pay the amount due, about 700$ on the 19th

I do not get charged interest

If I pay less then that, then whatever I paid, lets say 500, gets subtracted by the total that was due, leaving about 200$ carrying over to the next statement and I would get charged interest on the 200$

If I do not pay at all by the due date not only do I get charged interest for that amount, I also get a late fee

I doubt that you are not paying by the due date as you'd get a late fee as well..it seems like you're paying the balance that was owed on the statement no? And not the current balance right? That's okay, you won't get charged interest if so

Dumaine
 
Posts: 2
Joined: Wed Oct 23, 2013 6:32 am
Location: Michigan

Postby Dumaine » Thu Oct 24, 2013 9:24 am

darkguy2 wrote: Do I just have to pay off my previous statement balance before my new one posts to avoid interest?


Yes, pay off your previous statement balance before the next due date to avoid interest charges.

darkguy2
Centurion Member
Centurion Member
 
Posts: 606
Joined: Thu Jan 24, 2013 12:24 am
Location: United States

Postby darkguy2 » Thu Oct 24, 2013 10:06 pm

My due date is the 2nd and my cycle ends on the 6th. So I have from the 6th to the 2nd of the next month to pay off the balance to not be charge interest? So technically if I buy something on the 7th I would not have to pay it off until the 2nd two months later? That seems kinda crazy.
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)

DavidNY
Centurion Member
Centurion Member
 
Posts: 1332
Joined: Tue Jul 05, 2011 12:28 pm
Location: New York

Postby DavidNY » Thu Oct 24, 2013 10:20 pm

darkguy2 wrote: if I buy something on the 7th I would not have to pay it off until the 2nd two months later?


Correct .

takeshi
Centurion Member
Centurion Member
 
Posts: 1733
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Postby takeshi » Fri Oct 25, 2013 10:16 am

darkguy2 wrote:So technically if I buy something on the 7th I would not have to pay it off until the 2nd two months later? That seems kinda crazy.

Nothing crazy about it. It's all based on billing cycles. The 7th is the beginning of a new cycle.

Things change if you carry a balance.

darkguy2
Centurion Member
Centurion Member
 
Posts: 606
Joined: Thu Jan 24, 2013 12:24 am
Location: United States

Postby darkguy2 » Fri Oct 25, 2013 1:37 pm

takeshi wrote:Nothing crazy about it. It's all based on billing cycles. The 7th is the beginning of a new cycle.

Things change if you carry a balance.


Is that normal to be able to have 2 months to pay off your purchases? I also know that in the fine print it says that if I carry a balance then even my current purchases not on my previous statement can be charged interest.
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)



Return to “Discover, Diners Club”

Who is online

Users browsing this forum: No registered users and 2 guests