probably a really dumb credit card question

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probably a really dumb credit card question

Postby itissteeltime on Thu May 02, 2013 9:09 am

Every time i pay off my credit card, its always paid early and in full. However, i always end up witb a "previous balance" somehow. For instance in this period i spent about 700, but it had a previous balance of 300, so i owed 1000. I always pay 100% of my balance, so where does this 300 dollar balance come from?
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Re: probably a really dumb credit card question

Postby SoupOrSam on Thu May 02, 2013 9:41 am

Daily compounding interest or something.... I believe that's what was explained to me both times I paid off a vehicle.

Who the hell knows, they're all crooks.
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Re: probably a really dumb credit card question

Postby SoupOrSam on Thu May 02, 2013 9:43 am

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Re: probably a really dumb credit card question

Postby itissteeltime on Thu May 02, 2013 9:55 am

Considering i always pay my balance in full, and always early, im not sure how this balance could be compounded interest.
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Re: probably a really dumb credit card question

Postby Hockeynut! on Thu May 02, 2013 9:56 am

You paid your cc bill in full last month but they said you had a $300 balance to start this cycle?? There's no way that was all interest unless your cc is from one of those Western Sky/Native American companies.
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Re: probably a really dumb credit card question

Postby Beveridge on Thu May 02, 2013 9:58 am

Usually there is only a balance if the bill is processed before payment is received for past statement. I know I've seen utility bills that this happens and I just pay the charge for the current billing period.

However, since you said you always pay early, I doubt that is it.

I'd call them.
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Re: probably a really dumb credit card question

Postby itissteeltime on Thu May 02, 2013 10:00 am

Ill call the bank to figure it out, but... Maybe since i pay it early, any credit purchases i do before the next period are on the "previous balance." example: my balance is due april 30. On april 20 i paid in full. Between april 20 and 30 is where i spent the 300, and they call that a previous balance . Does that sound possible?
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Re: probably a really dumb credit card question

Postby Letang Is The Truth on Thu May 02, 2013 10:02 am

its not surprising how people end up in credit card debt. so easy.
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Re: probably a really dumb credit card question

Postby Beveridge on Thu May 02, 2013 10:04 am

itissteeltime wrote:Ill call the bank to figure it out, but... Maybe since i pay it early, any credit purchases i do before the next period are on the "previous balance." example: my balance is due april 30. On april 20 i paid in full. Between april 20 and 30 is where i spent the 300, and they call that a previous balance . Does that sound possible?


Could be...

I pay my credit card bills online. When a period ends, say April 30, the bill will show $500. If I spend $200 on May 1 and I log in to my account, I will see a balance owed of $700 even though I only owe $500 by next due date.
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Re: probably a really dumb credit card question

Postby SoupOrSam on Thu May 02, 2013 10:06 am

What was explained to me was this:

The paying in full doesnt show the actual "full balance." The compounding daily interest is carried over and is not applied until either the following month or in the matter of how my car payment I setup... was not calculated until the end of the term or calendar year or something. They confused me. I basically had an entire car payment to make.

Call and ask for your complete pay-off balance. I'm sure it's a different # than what you will see on your bill.
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Re: probably a really dumb credit card question

Postby Hockeynut! on Thu May 02, 2013 10:10 am

SoS - I really don't think that's right. I know on my AmEx I pay the balance every month. I never have any interest charges bleed over and certainly not $300 worth. I'm pretty sure itissteeltime is just seeing charges he made after his payment. You'd need to have a huge balance to incur $300 interest in a month.
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Re: probably a really dumb credit card question

Postby mac5155 on Thu May 02, 2013 10:14 am

I think interest is only charged if the balance is not paid in full within 25 days of statement close.

Also, if you have $300 interest, either you have $10,000 balance, or way high interest rate. The highest balance I carried for a month was $4500, and with like 20% interest, I was charged $80.
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Re: probably a really dumb credit card question

Postby IamtheWaris on Thu May 02, 2013 3:55 pm

If you are paying off your balance in full interest will not be relevant. I am guessing you are paying the full balance of that billing cycle, not the full balance of what is outstanding (prior billing cycle + current billing cycle). Since you don't pay your prior billing cycle the day it ends, there will be time where charges accrue in the current billing cycle before your prior billing cycle has been paid.
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Re: probably a really dumb credit card question

Postby meow on Thu May 02, 2013 3:59 pm

itissteeltime wrote:Ill call the bank to figure it out, but... Maybe since i pay it early, any credit purchases i do before the next period are on the "previous balance." example: my balance is due april 30. On april 20 i paid in full. Between april 20 and 30 is where i spent the 300, and they call that a previous balance . Does that sound possible?

This is most certainly the case.
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Re: probably a really dumb credit card question

Postby MWB on Thu May 02, 2013 4:26 pm

meow wrote:
itissteeltime wrote:Ill call the bank to figure it out, but... Maybe since i pay it early, any credit purchases i do before the next period are on the "previous balance." example: my balance is due april 30. On april 20 i paid in full. Between april 20 and 30 is where i spent the 300, and they call that a previous balance . Does that sound possible?

This is most certainly the case.


Agree. As others said, interest doesn't factor in if you are paying off the full balance each month. Interest gets charged if you don't pay the full balance.
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