Tilted Forum Project Discussion Community  

Go Back   Tilted Forum Project Discussion Community > The Academy > Tilted Life


 
 
LinkBack Thread Tools
Old 07-16-2004, 08:39 AM   #1 (permalink)
Insane
 
Credit Card Question

I have kind of a weird question about the billing system used by credit card companies.

Ive got just a standard Visa Classic. Nothing special. When does the 'interest' start on a purcahse.

Directly 30 days after a purchase is made? Or is it at the end of the month?

Ie: I buy something on the 27th, if it is not paid off by the 31st, interest starts on the amount which hasnt been paid back?

Ive never had to pay interest in the 3 yrs of having the card, but I am considering putting a laptop on the card, and I want to know how long I will have before I am charged interest.

Thanks!
junglistic is offline  
Old 07-16-2004, 08:43 AM   #2 (permalink)
Insane
 
I'm pretty sure interest isn't just a seperate fee. What they do instead is they give you monthly payments on an item that would be, let's say, $100. So over 12 months, you pay perhaps $10 for it each month...so by the time you pay off that one item, you ahve given them $20 interest.
How much interest depends on your plan and what type of card you have.
Trisk is offline  
Old 07-16-2004, 08:44 AM   #3 (permalink)
Daddy
 
Location: Right next door to Hell
I would check the agreement, to see what sort of grace period they give you.
edmos1 is offline  
Old 07-16-2004, 08:46 AM   #4 (permalink)
Junkie
 
Moderator Emeritus
Location: Chicago
Credit card answers from the Federal Reserve bank

It might differ from card to card, but it's the Grace Period that leaves you interest free.

The FRB had a pretty good defiition of the Grace period

Quote:
The grace period is the number of days between the statement date and the due date during which you can pay your bill without incurring a finance charge
Basically, if you want to but the laptop interest free - buy it on your statement closing date, and you've got 27 days or so to pay it off.
__________________
Free your heart from hatred. Free your mind from worries. Live simply. Give more. Expect less.
maleficent is offline  
Old 07-16-2004, 08:54 AM   #5 (permalink)
Insane
 
Ok that does make sense. My statement date is at the end of the month.

I will call up to confirm exactly.

Thanks !
junglistic is offline  
Old 07-16-2004, 09:01 AM   #6 (permalink)
"Officer, I was in fear for my life"
 
hrdwareguy's Avatar
 
Location: Oklahoma City
Most credit card companies give you a 25 day grace period to pay the bill. So interest should start accumulating on any outstanding balance on the card 25 days after the invoice date.

For example:
You buy a laptop on the 15th. The billing period ends on the 1st. Interest will start to accumulate on the 26th.
__________________
Gun Control is hitting what you aim at

Aim for the TFP, Donate Today
hrdwareguy is offline  
Old 08-10-2004, 04:05 PM   #7 (permalink)
Banned from being Banned
 
Location: Donkey
Interest is calculated on what's remaining and not the entire bill, correct?

So if you bought something for $100 and interest was 20%, your first payment would have interest of $1.66 and you paid $21.66 to make the remaining balance $80.

Your next payment would only be $1.33 then, correct? (80 * .2 )/12 = 1.33
__________________
I love lamp.
Stompy is offline  
 

Tags
card, credit, question

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -8. The time now is 01:16 AM.

Tilted Forum Project

Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2024, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.0 PL2
© 2002-2012 Tilted Forum Project

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360