Tricky Questions About Interest-Free Grace Periods

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Tricky Questions About Interest-Free Grace Periods

Postby audioresearch » Tue Jul 25, 2017 1:36 am

I have an Amazon Chase card. Regarding the interest-free grace period, the agreement is somewhat ambiguous and just says that if a balance is not paid off in full, interest will be charged for the statement period when it was not paid off in full and will continue to be charged until it is paid off in full.

For the first time ever since I've had this card, for my July 2017 statement, I am only going to make the minimum payment due and so I will be losing the interest-free grace period that I've had ever since I opened the card. This payment is due on 8/1/17 and I will pay it then on time.

Just a few days later on 8/3/17, I will have more than enough money to payoff the current balance on that day.

Here are my questions:

1. Is it good enough to pay the current balance shown when I go online or do I also have to find out whatever interest charge built up between 8/1/17 and 8/3/17 and also include those in my payment?

2. Assume I made whatever payoff payment is needed on 8/3/17 whether or not it has to include any built-up interest that I asked about in question #1 and that I wait to see that payment posted to my account when I go online. Let's say for the sake of this example that I see the payment posted to the account on 8/5/17.

If I start making new purchases on the card (not cash advances or balance transfer or anything else that is always charged daily interest) on 8/6/17, will the bank charge interest on purchases made during the August billing cycle on or after 8/6/17?

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Re: Tricky Questions About Interest-Free Grace Periods

Postby TXviking » Thu Jul 27, 2017 8:21 pm

Interest will be added to next month's statement. You can also call customer service to ask exactly how much has accrued on the day you make your payment, but due to delays in payment posting etc, it can be hard to get that math exactly right to the penny.

Interest stops accruing when you pay the statement balance in full. Even if you let the interest that accrued up until that point post on the following month's statement, you will not accrue additional interest after paying in full.

Also, if you usually pay in full and ask nicely, sometimes Chase will waive the interest, especially if it's only a few days' worth.

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