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    pastor1189's Avatar
    pastor1189 Posts: 1,538, Reputation: 3
    Ultra Member

    Aug 28, 2016, 03:12 PM
    Credit Card Interest
    Robert Knot credit card payment is due 09/19/2016, but he sends in his payment
    On 08/31/2016. About 20 days earlier. Do you think he is saving a bit of interest? Some say credit cards charge interest by the day?
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
    current pert

    Aug 28, 2016, 03:32 PM
    Not all cards are the same, but all are required by law to say how they charge interest.
    If the wording is all gibberish, he should call them and ask this question.

    Why is he paying any interest at all? I always pay in full. I hope he realizes the enormous (usury!) rates they charge.
    What he should do is pay the absolute most he can a few days before the due date.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man

    Aug 28, 2016, 03:52 PM
    As Joy said different cards charge differently. Some charge based on the average daily balance over the billing period. If his card is like that, then he will save some interest by sending in his payment early. Some charge a daily interest fee. Even there, he might save a small amount.
    ma0641's Avatar
    ma0641 Posts: 15,681, Reputation: 1012
    Uber Member

    Aug 28, 2016, 04:01 PM
    He saves nothing since the interest added is for the last billing cycle and the payment is for same. Your payment is applied to what is owned, not future unpaid balances. That said, if he is getting no interest for what he has in his checking account then it makes no difference. If he has interest checking, he is shortchanging himself. He should be trying very hard to pay down the outstanding balance, even if he send only $10 extra, that is how he will save money. I pay my bill 1 day before due, on line and I always pay it all off, no interest. And yes, it is usury!!

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