Can a Credit card charge you fincanc charges after you have brought you accout to zero balance?

Answer 1

Depending upon the agreement that you accepted when you got the card maybe so, yes.

Answer 2

Depends on the method the credit card company is using to calculate your finance charge.

Please bear in mind that a lot of credit cards calculate finance charges based on the average daily balance in your billing cyle. This means if you have carried a balance beyond the given grace period, you will pay finance charges even if you bring the balance to zero.

Why you ask?

Your AVERAGE DAILY BALANCE in the billing cycle is NOT your ending balance. Let me repeat that, your AVERAGE DAILY BALANCE in the billing cycle is NOT your ending balance! Never has been -- never will be.

So even when you have paid in full AFTER having carried a balance BEYOND the grace period, the credit card company is charging you for the interest associated with carrying that balance from:

(1) the last billing date

to

(2) the date the balance was paid in full.

Ain't nothing in life free!

Answer 3

be sure to read the fine details of your credit card agreement. the finance charges are generally calculated by the AVERAGE daily balance during the grace period, not the ending balance.

the key is to pay off the entire balance BEFORE the grace period for purchases ends (generally between 20 - 30 days, average 25).

for example, say you carried a balance of $500 all month, then paid it down to $1 on the last day of the 25 day grace period. because you didn't pay it off to $0, the finance charge would be based on the average daily balance, which would be $500.

to prevent any finance charges, i typically make 2 to 3 small payments throughout the month to each CC that i use. they can't stick you with charges for new purchases that are still in their grace period.

good luck!

Answer 4

No. But some credit card companies are starting to charge people a service fee if they keep their balance paid off all the time. (Because when people keep their balance paid off, the credit card companies don;t make any money of the insane interest rates they charge).

Answer 5

After the account is paid in full, no. However, finance charges may accrue between the time you check the balance and the time your payment is received by the credit card company. If you pay those in full the next month, your account should be clear.

Answer 6

You cannot be charged finance charges on a zero balance. It's against the law.

You can be charged a service fee to keep the account open. Close it if they do this. Others offer accounts without fees.

Answer 7

If you carried a balance into that billing period they can charge you charges on the remaining balance but every card is different -some charge if you don't use it I have heard - maybe a little more info??

Answer 8

it quite is nearly a horse slightly quite. in case you close up them then your debt to learn ratio might strengthen and reducing the style of open strains of credit can help your score to boot. yet once you have enjoying cards without 0 balances on them, then leaving one or 2 open with a nil stability can get you a greater effective interest value because of the fact the accessible credit on those enjoying cards is above 50% - that could help with expenses on different enjoying cards. it quite is something I discovered as quickly as I paid down some enjoying cards and then had them decrease my credit cut back. It harm my credit because of the fact even nevertheless I paid them way down, reducing the cut back additionally decreased my proportion of available credit. the appropriate subject to do could be to talk to the cardboard business enterprise.

Answer 9

if you brought the account balance to zero after the last statement due date, then yes, they will charge you finance charges on the outstanding amount from the last statement due date until the date paid in full.

Answer 10

I would also call and ask as suggested however,a credit card company can charge you a maintanance fee to keep the account active.

Answer 11

Depends on if the balance was still in the "grace" period or not... if it was past the grace period they can charge interest until the balance is brought to zero.