Let's say you pay 70% of your monthly balance... are you still charged an interest for the remaining 30% of that balance?
2006-09-09 14:42:53 · 10 answers · asked by zap 5 in Business & Finance ➔ Personal Finance
It depends on the financial institution. I work at a financial institution where you may pay on the 25th whatever the full balance of your visa card was on the first of the month. Therefore if your balance the first of the month was 700.00 and on the 25th the balance is 1000.00 you may pay 700.00 or 70% and not pay interest the following month. Most credit cards have a stipulation similar to this.
2006-09-09 16:17:17 · answer #1 · answered by Bob 2 · 0⤊ 0⤋
You will be charged a compound interest rate of your annual finance charge divided by 12. For example, if you have a 5000 balance, you pay 70 percent, that leaves a balance of 1500. If your annual interest rate is 7.9% then your finance charge will be:
$9.88, and your month-ending balance will be 1509.88. Your next month's minimum monthly payment will be 3% of your total balance (3% is the industry standard minimum monthly payment), so next month your minimum payment will be 1509.88 *.03 or $45.30
Hope that helps.
2006-09-09 21:47:35 · answer #2 · answered by greeneyedprincess 6 · 0⤊ 0⤋
Unless you pay off the entire balance, you will be charged interest on the outstanding balance
2006-09-09 21:47:12 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Of course. You will be charged interest on the balance you carry. It doesn't matter how much of it you pay, any amount that is being "loaned" to you beyond the grace period will accrue interest.
2006-09-10 00:58:41 · answer #4 · answered by misslabeled 7 · 0⤊ 0⤋
YES!! and you will probably be charged daily interest on new purchases as well. Best to pay the whole thing off every month.
2006-09-09 21:50:59 · answer #5 · answered by SPLATT 7 · 0⤊ 0⤋
If it not paid by the due date then yes, you are charged interest on the remaining amount
2006-09-09 21:45:16 · answer #6 · answered by hipergirl22 7 · 1⤊ 0⤋
yes...this is why looking for a credit card with a low interest rate is important
2006-09-09 21:46:13 · answer #7 · answered by Travel_Fan 2 · 0⤊ 0⤋
Yes! and if you paid it off, there will be a bill next month with the interest amt due.
2006-09-09 21:45:39 · answer #8 · answered by Mama Mia 7 · 0⤊ 0⤋
So?
They are cheats. They will invent charges and see if you pay them. If you complain they might delete them, or not. Depending if they think you will take your business else where.
2006-09-09 21:45:37 · answer #9 · answered by John16 5 · 0⤊ 2⤋
Yes, they stick it to you anyway they can. Sorry to have to tell you that.
2006-09-09 21:49:20 · answer #10 · answered by The pink Soccer ball 3 · 0⤊ 1⤋