When does a credit card charge interest?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
3 posts
Posts: 1
Joined: Fri Jul 27, 2012 1:49 pm
Location: Brandon, FL

When does a credit card charge interest?

Postby Steffie575 » Fri Jul 27, 2012 1:58 pm

I asked these questions to my credit card company and yet I still don't fully understand. I just got my card last week.

The rep on the phone told me that my cycle date is the 10th of every month and my payment due on the 7th of every month. She told me my first payment is due September 7th. (Which to me sounds wrong....it's July now, I don't have to make my first payment until September??) And that this cycle ends on August 10th. So here's my main question I guess....

The balance I have on my card now.....will it begin accruing interest after August 10th if I dont pay my balance before Sep 7?? So freaking confused. I hope this made sense to someone.

Money card
Centurion Member
Centurion Member
Posts: 1361
Joined: Tue Jun 28, 2011 10:13 pm
Location: New York state

Postby Money card » Tue Jul 31, 2012 11:10 pm

do you get a 12 month intro to try out your card? some cards are given to people to try out for 12 months to 18.

if your card company isn't doing this.

then let's say for example you got your first card last week( congrats) I will assume when she told you the cycle date is the 10th she means the closing date?

let's say you used your card in a few places, let's say you charged 125.00 between last week and up to the 10th. so now your statement closes let's say the minimum payment is 20.00 , let's say you paid 75.00, so for the next month which would be from august 10 to sept
10th you charged 60.00, if the company doesn't receive your bill in full the 125.00 by September 7th you would then be charged interest
it would be 50.00 x your interest rate plus what you owe from this cycle.

so if your statement closes on the 10th of august and you don't use your card for anything, in the mail it will have under where you would normally owe it will have 0.00.. but if you charge something before the 10th let's say the 6th it would be due on sept the 7th, does this make sense to you. so you close on the 10th of every month but your bill is due on the 7th of the following month so she is correct your first payment needs to be received by sept the 7th unless you don't use your card till after august 10th.

I believe after sept.7th. the companys give you time she mentioned to you that you get to the 7th. since you just got the card a week ago
you probably haven't used it yet. so even if you received a bill on august 14th, it would be impossible for them to receive your check
by august 7th. it's the 7th of the following month so there would be no interest charged to you after august 10th.

Centurion Member
Centurion Member
Posts: 875
Joined: Thu Apr 30, 2009 2:32 pm
Location: Texas

Postby jeffysdad » Wed Aug 01, 2012 7:05 am

Your cycle date of Aug. 10 (for this billing period) is the date your balance is tallied and a bill is generated. You have until your payment due date to pay this amount in full to avoid paying interest.

If you pay in part, interest will begin accruing on the remaining balance after the due date and will continue to accrue on this balance until it is paid.

The above does not apply, I believe in most cases, if during your previous billing cycle you carried a balance. In other words, when you owe the bank money, interest begins accruing on your additional purchases immediately; there is no grace period.

Anyone should feel free to correct me on this.

All you really need to know:
Pay on time, always. If you don't, you will incur a late fee.
Pay in full, always.
If not possible to pay in full, pay as much as possible.
Know that if you carry a balance, you will be accruing interest on your past purchases and the ones you are currently making.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

Return to “Finance Charges & APR Compare”

Who is online

Users browsing this forum: No registered users and 0 guests