Average Daily Balance Formula?

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blueduds
 
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Location: az

Average Daily Balance Formula?

Postby blueduds » Sun May 20, 2012 1:12 pm

Hello everyone,

I have a question and it seems for me, the easiest way to ask it is by giving an example. So say I get a credit card bill for $500 on 05/22 and the due date is 6/22. On 5/22 I pay the $500 bill so the balance is now $0, but I continue to use my credit card up to 6/22.

My question is, when 6/22 comes around do they charge me for the credit I used from 5/22 to 6/22 even though I paid the $500 balance on 5/22? How does the average daily balance formula work?

If this is the case, then I think the best thing to do is wait a week before the due date, pay the total outstanding balance at that time and do not use your card again until after 6/22. Is this correct?

Thank you


Money card
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Postby Money card » Sun May 20, 2012 8:40 pm

You used your credit card on May 22nd and you got a bill for 500.00. The due date is June 22nd and on May 22nd you paid your bill. They should have received your payment way before June 22nd.

When June 22nd comes around and you haven't used that card, your May 22nd is paid, you should be all set.

Now do you pay your bills in full or is there interest that you forgot to mention?

I wouldn't wait for the week before. I know everybody pays bills on different days but that's what I would do. I wouldn't wait till the begining of the next month, I would just pay my bill on the first Saturday, some may pay there bills on Sunday whatever I just wouldn't wait a week before.

You are correct use your card after June 22nd.

blueduds
 
Posts: 2
Joined: Sun May 20, 2012 1:04 pm
Location: az

Postby blueduds » Mon May 21, 2012 10:52 am

Thank you for the reply.

From my understanding, if you pay it off in full when it first becomes due that's great, but if you use your card prior to the end date or due date (June 22), you have to pay interest on that amount. That sucks.

thanks

Money card
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Postby Money card » Fri May 25, 2012 5:26 pm

you only pay interest if you don't pay your bill in full. so if your bill is 500.00 due June 22nd. if you pay your bill in full there's no interest.

if you decided only to pay 325.00 then there would be interest.

If you pay your bill in full, decided you need to buy some things around June 18th, you won't be charged interest.

If I were you when your bill comes in I would pay it the same day you pay your other bills don't wait till the week before.

if it says due June 22nd you received it May 22nd , you pay it right away and in full you can then use your card June 18th.

unless I made some mistakes. if a bill is late then there are late fees, I guess you can say interest if you want to call that. so if your bill is due on May 22nd you paid in full but they revived it June 27th, so you might have sent it May 20th. Then I would wait till everything in straightened out I wouldn't use the card on the 18th.

by the way your welcome.



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