Credit Cards - payment due date vs. closing date

[Anonymous]

I have what I'm sure is a dumb question. My credit card has a due date each month for the minimum payment. My credit card also has a closing date each month. Let's say that I paid my minimum by the due date. Am I charged interest for the amount remaining on the card between the due date and the closing date? Or will interest only be charged starting on the first day of the next billing period? I'm asking because I can't pay off my card entirely by the due date, but I can before the closing date. Example:

$1000 on card, $50 minimum due by 8/24, closing date 8/30.
I pay $50 by 8/23, leaving $950 on the card. I then pay the $950 on 8/30, leaving a zero balance before the end of the closing date. Am I charged any interest on the $950 for the period of 8/24-8/30?

Thanks.

[Anonymous]

you are getting things mixed up. what's due by 8/24 is money you spend in july. closing date of 8/30 is new spending since july closing date. yes 950 will incur interest

[Anonymous]

Closing date is for the current period.

July Charges. Then July Closing date. The due date for July charges is usually a month later than the July Closing date in August.

[Anonymous]

Thanks to both PP. This is OP. Updating my example in case that helps:
$1000 on card when statement is issued on 8/1 (so $1000 spent in July). $50 minimum due by 8/24, closing date 8/30.
I pay $50 by 8/23, leaving $950 on the card. I then pay the full $950 on 8/30, leaving a zero balance for the 9/1 statement. Am I charged interest on the $950 for the period of 8/24-8/30?

[Anonymous]

Hopefully this is not a dumb answer back to you.
Find a cash back reward credit card.
Then, if able, pay the entire monthly balance at due date instead of just making the minimum payment.

You will then be having the bank paying YOU $$ to use their credit card.
Always try to avoid super high monthly credit interest charges that credit cards incur.
Banks make crazy amounts of $$ by trapping people into credit card interest debt.

[Anonymous]

Anonymous wrote:Thanks to both PP. This is OP. Updating my example in case that helps:
$1000 on card when statement is issued on 8/1 (so $1000 spent in July). $50 minimum due by 8/24, closing date 8/30.
I pay $50 by 8/23, leaving $950 on the card. I then pay the full $950 on 8/30, leaving a zero balance for the 9/1 statement. Am I charged interest on the $950 for the period of 8/24-8/30?

Yes. Whatever you don’t pay in full by the due date has interest charged on it. The closing date has nothing to do with the previous statement.

[Anonymous]

Anonymous wrote:Thanks to both PP. This is OP. Updating my example in case that helps:
$1000 on card when statement is issued on 8/1 (so $1000 spent in July). $50 minimum due by 8/24, closing date 8/30.
I pay $50 by 8/23, leaving $950 on the card. I then pay the full $950 on 8/30, leaving a zero balance for the 9/1 statement. Am I charged interest on the $950 for the period of 8/24-8/30?

July spending 1000 (closing date for this statement was end of july)
Min due 50 on 8/24
Remaining balance 950 (this is the amount that you have to pay interest)
August spending $xx (closing date 8/30)

950 has nothing to do with 8/30 but everything to do with 8/24. Yes you have to pay interest for the period of 8/24-8/30 plus whatever fees CC charges

[Anonymous]

Anonymous wrote:

Anonymous wrote:Thanks to both PP. This is OP. Updating my example in case that helps:
$1000 on card when statement is issued on 8/1 (so $1000 spent in July). $50 minimum due by 8/24, closing date 8/30.
I pay $50 by 8/23, leaving $950 on the card. I then pay the full $950 on 8/30, leaving a zero balance for the 9/1 statement. Am I charged interest on the $950 for the period of 8/24-8/30?

Yes. Whatever you don’t pay in full by the due date has interest charged on it. The closing date has nothing to do with the previous statement.

Great, thank you. OP here. That's what I assumed. In response to the previous poster, I always do pay off my entire statement each month. It just so happens that this month, I won't be able to pay it fully until after the "due date" but I can pay it off fully before the closing date. So I was wondering what would happen during those few days in-between. Sounds like I can expect a few days of interest. So to avoid that, I'll just take money out of savings and pay it off fully by the due date and then replenish my savings 5 days later.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Thanks to both PP. This is OP. Updating my example in case that helps:
$1000 on card when statement is issued on 8/1 (so $1000 spent in July). $50 minimum due by 8/24, closing date 8/30.
I pay $50 by 8/23, leaving $950 on the card. I then pay the full $950 on 8/30, leaving a zero balance for the 9/1 statement. Am I charged interest on the $950 for the period of 8/24-8/30?

Yes. Whatever you don’t pay in full by the due date has interest charged on it. The closing date has nothing to do with the previous statement.

Great, thank you. OP here. That's what I assumed. In response to the previous poster, I always do pay off my entire statement each month. It just so happens that this month, I won't be able to pay it fully until after the "due date" but I can pay it off fully before the closing date. So I was wondering what would happen during those few days in-between. Sounds like I can expect a few days of interest. So to avoid that, I'll just take money out of savings and pay it off fully by the due date and then replenish my savings 5 days later.

if this is your first time, give them a call and ask them if they can waive your interest. come back and thank me later. good luck

[Anonymous]

Anonymous wrote:Thanks to both PP. This is OP. Updating my example in case that helps:
$1000 on card when statement is issued on 8/1 (so $1000 spent in July). $50 minimum due by 8/24, closing date 8/30.
I pay $50 by 8/23, leaving $950 on the card. I then pay the full $950 on 8/30, leaving a zero balance for the 9/1 statement. Am I charged interest on the $950 for the period of 8/24-8/30?

Yes, you are.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Thanks to both PP. This is OP. Updating my example in case that helps:
$1000 on card when statement is issued on 8/1 (so $1000 spent in July). $50 minimum due by 8/24, closing date 8/30.
I pay $50 by 8/23, leaving $950 on the card. I then pay the full $950 on 8/30, leaving a zero balance for the 9/1 statement. Am I charged interest on the $950 for the period of 8/24-8/30?

Yes. Whatever you don’t pay in full by the due date has interest charged on it. The closing date has nothing to do with the previous statement.

Great, thank you. OP here. That's what I assumed. In response to the previous poster, I always do pay off my entire statement each month. It just so happens that this month, I won't be able to pay it fully until after the "due date" but I can pay it off fully before the closing date. So I was wondering what would happen during those few days in-between. Sounds like I can expect a few days of interest. So to avoid that, I'll just take money out of savings and pay it off fully by the due date and then replenish my savings 5 days later.

Don’t forget that after the 24th all other purchases will start accruing interest, not just the $950. If you really don’t want to pay interest on the 30th pay off the entire balance as of 8/30.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Thanks to both PP. This is OP. Updating my example in case that helps:
$1000 on card when statement is issued on 8/1 (so $1000 spent in July). $50 minimum due by 8/24, closing date 8/30.
I pay $50 by 8/23, leaving $950 on the card. I then pay the full $950 on 8/30, leaving a zero balance for the 9/1 statement. Am I charged interest on the $950 for the period of 8/24-8/30?

Yes. Whatever you don’t pay in full by the due date has interest charged on it. The closing date has nothing to do with the previous statement.

Great, thank you. OP here. That's what I assumed. In response to the previous poster, I always do pay off my entire statement each month. It just so happens that this month, I won't be able to pay it fully until after the "due date" but I can pay it off fully before the closing date. So I was wondering what would happen during those few days in-between. Sounds like I can expect a few days of interest. So to avoid that, I'll just take money out of savings and pay it off fully by the due date and then replenish my savings 5 days later.

Yes, best solution. Interest rate on your credit card is several multiples of what you would earn in savings account that is also taxable. I'm previous poster.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Thanks to both PP. This is OP. Updating my example in case that helps:
$1000 on card when statement is issued on 8/1 (so $1000 spent in July). $50 minimum due by 8/24, closing date 8/30.
I pay $50 by 8/23, leaving $950 on the card. I then pay the full $950 on 8/30, leaving a zero balance for the 9/1 statement. Am I charged interest on the $950 for the period of 8/24-8/30?

Yes. Whatever you don’t pay in full by the due date has interest charged on it. The closing date has nothing to do with the previous statement.

Great, thank you. OP here. That's what I assumed. In response to the previous poster, I always do pay off my entire statement each month. It just so happens that this month, I won't be able to pay it fully until after the "due date" but I can pay it off fully before the closing date. So I was wondering what would happen during those few days in-between. Sounds like I can expect a few days of interest. So to avoid that, I'll just take money out of savings and pay it off fully by the due date and then replenish my savings 5 days later.

if this is your first time, give them a call and ask them if they can waive your interest. come back and thank me later. good luck

Thanks! -OP

[Anonymous]

Anonymous wrote:Thanks to both PP. This is OP. Updating my example in case that helps:
$1000 on card when statement is issued on 8/1 (so $1000 spent in July). $50 minimum due by 8/24, closing date 8/30.
I pay $50 by 8/23, leaving $950 on the card. I then pay the full $950 on 8/30, leaving a zero balance for the 9/1 statement. Am I charged interest on the $950 for the period of 8/24-8/30?

You need to pay the full 950 by the due date of august 23.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Thanks to both PP. This is OP. Updating my example in case that helps:
$1000 on card when statement is issued on 8/1 (so $1000 spent in July). $50 minimum due by 8/24, closing date 8/30.
I pay $50 by 8/23, leaving $950 on the card. I then pay the full $950 on 8/30, leaving a zero balance for the 9/1 statement. Am I charged interest on the $950 for the period of 8/24-8/30?

Yes. Whatever you don’t pay in full by the due date has interest charged on it. The closing date has nothing to do with the previous statement.

Great, thank you. OP here. That's what I assumed. In response to the previous poster, I always do pay off my entire statement each month. It just so happens that this month, I won't be able to pay it fully until after the "due date" but I can pay it off fully before the closing date. So I was wondering what would happen during those few days in-between. Sounds like I can expect a few days of interest. So to avoid that, I'll just take money out of savings and pay it off fully by the due date and then replenish my savings 5 days later.

Don’t forget that after the 24th all other purchases will start accruing interest, not just the $950. If you really don’t want to pay interest on the 30th pay off the entire balance as of 8/30.

Np here. What?? She should not start accruing interest until after the due date. I don’t understand what you are saying