WHEN and HOW MUCH to Pay on Your Credit Card to Avoid Interest!
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- Опубліковано 1 жов 2024
- WHEN and HOW MUCH to Pay on Your Credit Card to Avoid Interest!
With all of the terms and rules associated with credit cards it is no surprise that SO many people pay interest on credit cards simply because they don't know THIS information!
Knowing when to pay your credit card to avoid interest as well as how much to pay will save you so much money and make you a more responsible credit card user.
Don't pay credit card interest and maximize your credit card rewards by following this.
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What is YOUR Credit Card Question??
I just got off the phone with my Cap One customer service rep because of interest on two separate statements. I understood why the interest was charged the following month for the balance that was not paid. But the month following having paid the whole balance, I still incurred interested on the unpaid balance from that previous month. I was told it is called "residual interest" that happens when the card balance is not fully paid in one month but then is paid fully the following month. This happened to me and I was told to pay the full balance two months in a row to begin seeing no interest charged on my statements. This seems very deceptive to the consumer.
Hi,
Is it possible that the payment due date is not always available? Looking at some of the statements I do not always see these appearing.
@@careybentson662 After paying off the full amount and getting charge for the "Residual Interest", will the residual interest on the statement accrued more residual interest?
Duuh
Hi Ma’am May i ask what is all about residual interest?thank you
The actual information starts at 2:09.
She talks a lot... So annoying 🙄
@@A-md3uz for real. This was 10 seconds of information covered in 5 minutes for some reason.
That’s gold
I wish somebody would do a video on what happens if you pay different percentages on your credit card by your due date. Like if you owe $100 and you pay $75 by your due date. What happens the next month if you still owe $25 or when your billing cycle ends. And how does that affect your credit score? That's the type of video I'm interested in knowing how different percentages affect your credit score if you don't pay in full by the due date.
Thanks for making this short and sweet and straight forward!
Very well explained. Thanks for sharing your tips. Cheers!
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I read an earlier comment and wanted to follow up. In essence, to avoid paying interest I need to avoid carrying a balance: pay off the current balance by the due date (usually like 3 weeks from when you get the bill/statement).
What if I use the card during that 3-week grace period? Still just focus on amount that was on the bill/statement or pay off the current balance + what I'm spending during the grace period?
Not rocket science. If someone did not know this they should not have a credit card in the first place.
Rule Number 1= Pay of the full balance not just the minimum payment as it will cost you more in the long run
Rule Number 2= If your Due Date is 15th October assume it says 10th October because if you pay bang on the 15th you may still be charged interest as it might not arrive in their system until 18th October 3 days later
I didn’t find this video helpful!
I need more details, more examples. You have Capital One, but others have different things.
I have American Express for example.
So after the Statement ends, how much time do I have to pay if off, 30 days?
My partner pays £190 every month on time yet 2 weeks later she has to pay £140 interest.
Surly this can’t be right??
£5000 card & she’s never gone even close to the limit.
How does she freeze the interest they are charging as it’s crippling her?
Never missed a payment not even once.
There's a reason why you don't have many subscribers.. It's because you don't actually answer it until 2 minutes into the video
wow Min payment 160 I pay 294 Got hit with an interest fee 82 bucks but my late fee 30 dollars
I've watched so many videos on this topic and I must say, this one was THe BEST! THANK YOU for keeping it simple and straightforward!!!
Awww thank you Kiki! This made my day 💕
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She I was thinking the same .she goes right to the point with no bull around the bush and she well manner and articulate .
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That has not been my experience, I called each of my credit cards ( citi, chase Discover) and each told me the same. Each card has its own transaction cycle. If you want to avoid interest you need to make a payment before the cycle ends. sits a couple days before the due date.
but that’s not my case with my citi bank credit card. i paid the statement balance in full before my due date and still i got interest charges. I did call and asked to reverse it and they said that i made purchases after i paid my statement balance which is confusing to me.
Same happened to me with Bank of America
Look at your statement and find the opening and closing date. The full balance has to be paid by the closing date. For example, my opening date was Aug 7 and closing date was Sept 7 with a due date of 1 Oct. I would have to pay the total balance on Sept 7 to avoid paying the interest for that billing cycle. Anything charged from Sept 8 - Oct 7 will be due on Nov 1 but to avoid playing interest, the total would have to paid on Oct 7 (next cycles closing date). This is where is gets confusing…. your closing dates will be determined by how many days in the month. It will not be same day per month. Furthermore, after paying the total balance on or by the closing day, it is advised not to use your card for the following 7 day to allow the CC company to report a zero balance to the credit bureaus.
Hi, Great video. I owe 733 on my card...how much of that should I pay?
My is almost max out closing date is Nov 15 I will have like 200 payed off but I will owe 1300 still
You are not right. Its oversimplification. Interest are calculated daily.
wow and i thought i would be learning something...waste of time really...of course if u pay ur balance u dont pay interest!
but if you pay off your balance in full you will get a o balance and will not gain a credit point, believe me i just got my fico report and it say zero balance and my score did not move, you youtubers talkin with half of information , there 2 thing going on paying in full and leaving a balance , your balance is your utilization
They are changing to daily interest calculations. How do you feel about that?
Hi Lizzz.
Let’s say I missed paying my full balance and now I need to catchup and pay it in couple of months until it paid in full. Here is my question...WHEN is the BEST DAY to pay some fixed amount for that credit card each month in order to at least pay less in interest. Should I pay next day after statement day or at the due date? Again..my goal to pay less in interest until I pay it off.
Will very appreciate your response.
Thank you.
The best day would be the same day you get your statement. The interest compounds every day, so it’s best to submit payment on the first day to decrease the amount that will be subject to interest.
Next time edit a video with enough volume so I can hear you....dislike for that
APR wouldn’t be such a problem if it isn’t too high.
Awesome video, makes perfect sense, Now I have a better understanding on how this works, thank you for keeping it simple and straightforward. 😊
You're very welcome!
Suppose if you don't have money to pay full balance statement and you can only pay minimum due payment; will you still be charged with interest
WOW.... JUST WOW.... what a waste of time
Oops, sorry ✌️
Yeah everyone knew that we need to pay within due date but for 5 mins you are explaining same🙄
@@rajjumaharjan9639 Turn the page and go elsewhere please.
To be honest, I just needed assurance that it was the case… thanks great video !
What if you can’t pay the complete balance owed at one time?
Good luck paying that statement balance on a maxed out card 😂
Thank you for explaining
So I’ve been paying my CC on time but I always pay $20 to 30 dollars more than the minimum yet the bank charges me twice for interest in the same day. Why do they charge me twice?
I’m not clear on what you mean by twice? But you will be charged interest because you are not paying off the entire statement balance. Paying MORE than the minimum is still better than only paying the minimum, so keep doing that until you are able to pay it off every month. 👍
I thought you had a secret, bcuz paying off the full balance is not one.
you only have a credit card as you are unable to manage your finances . it is a debt card .
When I was on credit card debt for around 2 or 3,000 dollars. Yes, I paid the minimum payment. But then I decided to pay 2 or 3 times the minimum payments.
So you told us sumthing we already know
Why are you making this type of video
So technically… you CAN carry a balance… but it just has to be what was charged after the statement balance?
Carrying a balance would mean that you didn't pay off the entire statement balance the previous month. For example, your statement balance was $500 and you only made $400 in payments... then technically you carried a balance of $100, and would be charged interest on that. However, if you make $500 in payments and charge $600.. then your statement balance went up $100 but there wouldn't be any interest charges because your payments equaled to your previous statement balance.
Hopefully that didn't end up confusing you more than it helped. lol
00:37 and step 3 at 2:40 are in direct contradiction to each other...?!?
Starts from 2:04
Bed video ever no bullshit at all
What does purchase interest charge mean? Chase charged me a $47 fee even tho I made my payment 6 days early before my due date? I don’t understand, that’s also the first time
That's what I'm trying to figure out as well!! I try to pay early just in case. All I know is I'm paying off my credit card and tossing it in my sock drawer because damn lol. I see why alot of older people kept warning younger people about credit cards. I'm just doing debit and cash, how this economy going I don't need something else causing grey hairs.
How do we know how much we spend on credit card till now to waveoff anual fee for next year
can any one suggest me calculation process
Annual fees are not something that can be waived based on spending. You can call your bank within 30 days of being charged and ask if they can waive it. Make sure you understand the *value* in that annual fee or ask to downgrade it to a non-annual fee card.
Con razón me están cobrando interest charges,creí que solo tenía que dar un pago antes del due date
Qué triste eso
Sí. Es correcto pero hay que pagar todo su balance antes del due date sino entrar al interes
I pay a week before the due date
what a waste of time
*What happens if you pay days early before statement & due date all the time? I got chase freedom student & I’m new*
Then you should easily be able to avoid interest. I make multiple payments a month, as long as my payment totals to more than my statement balance then I avoid interest. 👍
I mean, duh
Slow down!!!
Wait, so we have to pay off our balance in full and not the minimum to avoid interest?
Yup!
I've past my zero interest period. So does that mean I can use the credit card and pay the balance before the due date and it's still INTREST free
Correct. Pay the entire balance to avoid interest.
2.03
Hello lizz sorry if I got your name wrong, was hoping to ask you a question regarding how I should pay, if I cannot pay my thy hold amount off, ok for example I own 2100 dallors and only 1900 and it carries over to next month do I own intrest on thy reminder. Can you answer that question for me thanks
Yes, you would owe interest on the remaining balance. In your example, you would get charged interest on the $200 you still owe on the card. Hope that helps!
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I set a minimum payment automatically every month and they still charges me interest fee? Can you help?
If you don’t pay off the ENTIRE statement balance then you’ll be charged interest on the remaining amount. Setting a minimum payment doesn’t guarantee you’re paying off the credit card…
I believe you can set for you to automatically pay off the entire statement balance instead of a minimum amount.
THANK YOU! I just spoke to capital one and trying to understand that was like a one year old trying to find their nose.
Now i know. Pay off your statement balance by the due date. 😊
tell me why i have spent over 5 thousand in 9 months and spent less than $30 in interest with a 22% apr in 2023 ? i only pay off half every two weeks?
👍
hi love the way you explain everything. I WILL LIKE TO KNOW HOW DO I FIND THE DATE TO PAY MY WHOLE BALANCE BEFORE THEY REPORT IT TO THE CREDIT BURU SO I I SPENT 200 ON JUNE 5 HOW CAN I TELL WHEN TO PAY IT BEFORE IT SAYS ON MY STATEMENT I HAVE A BALLANCE THANKS I'M NEW
Fu
Thank you! I'm super frustrated as I did pay off my credit card before my due date and yet I still got charged almost $16 interest charges. So what the heck are they charging me interest charges on?
Thanks for stealing the obvious Lisette. I can’t believe you put all that production into saying simply pay whatever you Spend every month. We all know that. I thought you had some kind of a hack or something. I can’t believe you put that suit on and everything just to tell us that. LOL this is hilarious am I being punked ? Am I being trolled? No I think you just think you know something we don’t LOL
This doesn’t seem to be working. I was paying off my balance every month
I’ve consolidated 2 of my credit cards, my loan provider asked me the exact amount I had on one of my credit cards, I gave it to them, funds took 2 days to transfer, on those 2 days, an additional $35 were added to that card. I was not using this card at all.
I now had a balance of $35 after funds transferred. Found it strange, 2 days later, it’s at $52.
Interests seem to accumulate on a daily basis. Wtf 😠
what about the statement DATE?? the one that gets reported? NO THE DUE DATE
If I use my card on the 10th and my statement is due on the 26th do I pay it even tho it hasn’t been a month? Or do I wait till the next month to pay to avoid interest?
You normally have 21 days between your statement closing date and your next due date.
So that means if you made a transaction on the 10th and your due date is the 26th… then that statement cycle would have closed around the 5th to allow you the 21 days to pay.
Which means the transaction on the 10th would actually be part of your NEXT statement. So you could hold off on paying it until then and avoid interest, or pay it before. Either way you avoid interest! 👍
That’s why it’s so important understanding the difference between your statement cycle, and your due date.
Could of just said, pay off your credit card to avoid interest in 30 seconds.
I was hoping my question would be answered but nice video .
Silly question. Just confirming that “new balance,” the same as,”statement balance,” correct?
PS love the video!
Exactly what I was looking for! Thumbs up n subbed!
So glad to hear that, thank you!
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Question so I have Bank of America. My statement balance is 823.46 same as current balance do I need to worry about statement or current because I’m freaking out because I need to pay down my current balance later on but I just scheduled to pay my statement balance today.
She just told me what I already knew…
Huh, never had to do this. I've had my credit cards automatically paid every month, where it automatically transfer from my account to my credit cards.
I pay every month before due date still get interest
Are you paying off the entire statement balance?
@@lizbettalksmoney no
What is closing date and how is it different from due date?
Closing date is essentially the cutoff date of the billing cycle. For example, if my billing cycle goes from May 1st-May 31st then my closing date is May 31st. That means after the 31st, my bill will be generated and I will receive a statement with what I owe by a due date, the due date will be sometime in June. I hope that clarifies it a bit more.
What if you pay before the due date
Same result. As long as it's not after the due date. 👍
I have a question. I just got off the phone with capital one, he told me my credit card is going to get charged interest every 3rd of the month. He also told me what due date I have to pay it. So can someone confirm if he is correct about it or if you are Liz ?
For people who want to avoid paying interest but can’t pay the full balance at the end of the month, to my knowledge with my discover card I just pay a little more than the minimum because the minimum is just requirement they want you to pay but it doesn’t cover all the interest so if you pay more than the interest being charged you pay enough to cover the interest and pay down the principal and when you get your statement at the end of the month 0 interest has been charged even if you still have a balance at the end of the month
Then how are credit card companies making money? The balance left over every month is what the interest is applied to. And if you have a balance you have an interest applied to it, meaning an interest fee.
This is the answer I was looking for. Thank you for posting.
THANK UUUU ! I have discover & can’t pay the entire balance this issss the comment I was looking forrrr
Hello, My wife made a mistake paying the minimum amount of the balance, how can we get rid of that debt to avoid paying interests? Thank you.
The question I asked is why are interest rates do high. My fico is 801.y lowest interest rate is 26.99. Totally outrageous amount.
I have NEVER been late, I always pay more and early. I've have paid off 4 cards and have 4 left.
I did and I was still charged😔
You did? If you are referring to paying off the balance, it could be something called residual interest if you recently got caught up. You shouldn’t be paying interest every month if you are paying off the entire statement balance, if you are, then I would contact your CC company.
You answered my question. Watched 3 other videos & talked to my bank on the phone & didn't make it as clear.
Pay full balance during month & you won't be paying interest. Even if you continue to use the card during that month. You've already payed the Statement Balance & the other funds accrued will show up on next month's statement. 👍👍
Exactly what I needed to know! I had a feeling this was the case but just really wanted to make sure. Thank you!
I'm paying my credit card balance before due date. My credit score is good. I used to pay to tons of interests.. Is it good to pay the balance before the due date, since score is good?
I pay my car payment on time., that should help me increasing my credit score.
What is interest mean
Interest is how much you pay for borrowing money. Or how much they pay you for letting others use yours (example: savings account interest)
Im currently utilizing a credit card with Volocity banking and trying to determine the best time to chunk my personal spending budget on the card, the minimum is 105 but my personal spending budget is 1500 for the month, that includes gas, groceries, house hold items
Why this didn't work for me?
I have Capitol One.
Balance Due was $8,687.87
Paid total of $6, 700 by the Due date
Next statement got charged a $122.43 APR on a balance of $5, 711.16
So frustrating. I don't know how they do that.
Can you explain this?
You didn't pay off the entire balance.. The only way to avoid paying interest is to pay off the statement balance in full & on time, every single month.
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Really great information here, thanks for sharing!
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Still confused..i watched other video of soneone else they were like you have to pay balance statement in full or u will have to pay interest.. please clear my doubts
Thanks liz from England 🇬🇧 😀
also if i buy phone work 45k and planning for instalmment using my credit card for 12 months. will the bank ask for interest? or just thr 45k divided by 12 and thats im going to pay per month?
If you were offered a promotional offer when you received the credit card then it makes sense to make a large purchase and pay it off during that promotional offer. However, if you did not receive one then I don’t recommend using it for a large purchase because then you will have to pay interest every month. Hope that helps!
Useful and simple. Good job thanks
My question would be how would a person manage multiple credit cards? I mean for example let's say you have a regular capital one credit card and a credit card from Lowes. It would seem to me that shouldn't you be wise in spending on each credit card keeping in mind your monthly budget? It gets confusing to me. One credit card may have a 5k limit and the other 2k limit. Basically I guess I'm asking how would you juggle multiple credit cards without going into debt and paying interest for one of those cards if not eventually all of them? Thanks for your help and advice. I enjoyed your video.
Hi Joseph! Thank you for your question! I do manage multiple credit cards but that wasn’t always the case. At first it was just one credit card that earned me the most points so that I could easily keep track of my spending. Once I got super comfortable with that, I started to use the best one for whatever purchase I was making to maximize my rewards on other credit cards. That required for me to create an excel sheet that helped me track all of my transactions and which card I used so that they all got paid on time and in full, to avoid interest. It does take a little more work, so I wouldn’t recommend it if it doesn’t sound like something you would like to track. Choose the one that gives you the best overall rewards, and only use that one for all of your expenses.
I’m kind of confused because my December statement was 1,500$ and I made 2,000$ worth of payments but I still got charged interest on 3,000$ worth of purchases made in December on my January statement. How does that make sense? Shouldn’t I have a chance to pay that off in January?
I pay my credit card off during the month and still charged interest as if it was a full balance
try to speak to the point
I love your videos!! I love learning about credit and credit cards
Awww thanks!! I love talking about it! Lol 😉
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Thank you for the amazing video! But I have a question.. I usually pay off my CC every week as soon as I get paid, but if I spend $1k 3 days before my due date, can I still be charged interest if I pay that 1 or 2 days after my due date ? Even paying it off every week ?
Nope! The $1k you spend 3 days before your due date is part of *next* months statement. Paying off your card every other week is a great strategy!! 🙌😊
I pay my credit card each month by direct debit from my bank account but my credit limit is reducing each month by the same amount?
Thank you!!! I LEARNED THIS IN FIRST GRADE!!!!!!!!!!!!!!
I have a question I've been paying my card like a week earlier than my due date and I send extra and haven't used it in almost a yr, how come my bank is still charging me interest?
Unless you pay off the entire balance, they are going to keep charging you interest. Pay it off as soon as you can and don’t add more unless you are able to pay it off as you use it.
@@lizbettalksmoney Thanks for helping :)
Of course, anytime! 😊
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Very clear to the point. Love it
So glad to hear that, thank you!
@@lizbettalksmoney I literally understand 100 percent what's going on now. You have taught me enough that I can source the rest of the info on my own. I plan on passing this info on to my people whom struggle. Lack of understanding these overly complicated yet simple rules of credit keep entire generations in debt. I plan on shouting you out and giving you a lot of credit. Your willingness to take time and share is nothing short of amazing and will not go unnoticed. I will be in touch. Thank you again✊🏾.