Credit Card Forum
  1. #1
    Green Member
    Join Date
    Feb 2012
    Location
    Virginia
    Posts
    3

    Default How to avoid interest charges on credit cards?

    Hi, I am 18 years old and just got my first credit card. I am trying to build my credit and figured I would get a card that can get me cool rewards too. I got the Citi Forward Card and just make sure I understand exactly how it works.

    I do not want to get charged interest for anything

    I have a current balance on the card of $293.97. This includes money I have spent after my last statement.
    • Next Payment Due Mar. 7, 2012
    • Next Statement Mar. 12, 2012
    • $20 Minimum Payment
    • My last statement was $64.44
    So what I am thinking is that if I pay $64.44 by March 7th I will avoid interest charges. I don't have to pay the rest of the $293.97 until the next statement. Is that correct?

    Thanks for the help!
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  2. #2
    Centurion Member
    Join Date
    Apr 2009
    Location
    Texas
    Posts
    879

    Default

    If you pay the full amount of your last statement balance and you have a grace period, you will not be charged interest.
    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.
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  3. #3
    Centurion Member
    Join Date
    Jun 2011
    Location
    New York state
    Posts
    1,381

    Default

    Do you have a 0% interest free for 6 to 12 months? If you do I would pay little bit over time.

    You say your bill is 293.97. Keep track of your spending receipts, since you charged 293.93 if you do get 6 to 12 months interest, assuming you live home with your parents and assuming you don't pay rent, I would charge no more than 200.00 for the next month. You said you want to pay 64.44 if you get interest free this is a good idea.

    If you don't get an interest free promotion then I would pay the whole bill rather than write 2 checks. I would just pay the whole bill Saturday.

    If your parents are charging you rent and 0% for 6-12 months I would charge no more than 100.00, the 64.44 is a good idea just keep track of your spending and don't go overboard, keep yourself ahead of Citibank. and good luck.
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  4. Centurion Member
    Join Date
    Mar 2010
    Location
    Australia
    Posts
    163

    Default

    Good evening and welcome to the wonderful world of credit. I would always pay in full unless you get a promotional deal with so many month at a very low or non existant interest rate. I hope that you enjoy your credit journey!
    Non credit card accounts:

    Main transaction: http://citibank.com.au/aus/banking/e...ibank_plus.htm
    Secondary transaction: http://www.nab.com.au/wps/wcm/connec...Finance/5/1/2/

    Credit cards:

    Main credit card (used for everything except those non AMEX places: https://www.americanexpress.com/au/c...-express-card/
    Secondary credit card: http://www.nab.com.au/wps/wcm/connec...nce/4/56/#tab1
    Other line of credit: http://citibank.com.au/aus/lending/l...eadycredit.htm
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