If I pay off in full everything I charge by the end of the billing cycle, is that all I pay for (ie, only my purchases)? or do I still get charged other fees?
2007-02-20 13:32:39 · 6 answers · asked by socal47 1 in Business & Finance ➔ Credit
Whether or not you pay interest on your credit card balance on two things: the grace period for repayment and the method by which the credit card company computes balances for purchases. These are both listed on your credit card’s application/user agreement, so it’s important that you take a look at these sections and review them carefully whenever you apply for a credit card.
Grace Period: This is exactly what it sounds like – the number of days you have after the purchase to pay your balance in full without incurring any interest expense. Watch out for credit cards that have “no grace period” listed in this section of the cardholder agreement if you don’t want to pay interest on your purchases!
Method of Computing Balance: Less obvious than the grace period, this is financial jargon for figuring out how often interest is applied to your balance. Most credit cards use “average daily balance” as their means of computing this interest; this allows you to take advantage of a grace period if one is listed in the agreement. Watch out for credit cards that list the method as “two cycle average daily balance” as this will allow them to apply interest to your card before your grace period for full repayment expires.
If you are sure that you can pay the balance in full every month (and good for you for doing so!) then I would recommend an American Express Gold or Green card for your credit card choice; both of these cards are straight up and down “pay as you go” each month with no confusing payment terms or questionable due dates. Otherwise, any other credit card will do – just be sure to check the terms & conditions before you apply!
2007-02-21 11:55:18 · answer #1 · answered by kimberly_carte 1 · 0⤊ 0⤋
Depends on the company. Most (good) Credit cards have no annual fee. If you have no annual fee, and no maintainance fee or aything like that, then you will not be charged anything else. If you are charged anything else, you need to switch Credit Cards. You should never pay for the priveledge of having a credit card, those days are WAY in the past. Nowadays if your Credit Card is charging you a fee or not giving you Cash Back, then change it. Look at Discover Card, America's #1 Cash Rewards system, rated by a third party. With a Discover Card you will NEVER be charged an annual or maintainance fee, and you get paid for using your card in CASH! Plus they have $0.00 fraud liability, 24/7/365 Customer Service that answers in less than 60 seconds, all Call Centers INSIDE THE US, so you understand the person you talk to and they inderstand you. I hate to sound like a commercial for them, but it's all true.
2007-02-20 15:09:31 · answer #2 · answered by quarlow 2 · 0⤊ 0⤋
No you shoul,dt have to pay extra charges if you pay it right off depends what you have, good luck
2007-02-20 15:24:54 · answer #3 · answered by pattibcacl 6 · 0⤊ 0⤋
as long as you pay the balance in full every month, that is all you will be paying
2007-02-22 16:37:05 · answer #4 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
This is a great question, and one that intrigued me for quite some time.
2016-08-23 18:47:29 · answer #5 · answered by Anonymous · 0⤊ 0⤋
This is a good question
2016-07-28 08:52:00 · answer #6 · answered by Anabel 3 · 0⤊ 0⤋