New to the credit card thing?

Question

So, I got a credit card, and racked up a $470 bill, so before I got the statement I made a $200 payment.
I got the statement and it says they received the $200, and now I like $276 or something...
It says minimum balance due $0.00
Payment due date 11/11/07
what does that mean?
Since I made the $200 payment I don't owe anything else this month?
Someone please explain that to me.. I don't wanna mess it up

Answer 1

You don't have to make the minimum payment, and there will be no late fee, but if you don't pay the entire monthly charges, the credit card company will tack on monthly interest to the entire monthly bill, so even if you don't run up any more charges, you will have to pay $276 plus the monthly interest on $470.

That's the way the contract is written, and that's how credit card companies make their money--on interest.

The only way to avoid all charges is to pay in full, on time, every month.

Current statistics show that the average American's unpaid credit card balance now averages close to $9,000--with interest running on that every month. You have just learned how easy it is to start running up an unpaid balance. DON'T LET IT HAPPEN TO YOU! Don't spend more than you can pay.

Answer 2

This is one of the tricks of credit card companies. Basically, you made the payment for the month ahead of time, they credited you with the payment, charged you a bunch of interest and said you didn't owe this month's payment, which you don't. But they are still charging interest. If you can afford it, keep on doing the same thing and you may never know the tiny minimum payment that would have you paying almost forever.
Think of payment due date as being the closing date for payments. If you get more money to them by then, it will show up on your next statement, if not, then nothing happens because you have 0.00 minimum - they just don't retype the whole form for those that have 0.00.

Answer 3

You have already made a payment that is larger than the minimum payment. If you can you are wise to pay off your credit cards monthly. That way you are not charged interest. Another thing - DO NOT use the card for cash advances. The interest on these advances start from the moment of the advance and are the last item that is taken off with your payment.

Answer 4

That could be a mistake on there part. But some how I doubt it. You are doing the right thing by paying more then the minimum payment, good job. If you have the money pay the rest of the balance off. If you have a credit dept it should be payed off as soon as you can do it. So if you have the rest of the money pay the rest of the balance. You can go wrong doing that.

Answer 5

Minimum payment is one way that the credit card company has of keeping you with a balance on the card that will accrue interest. You always owe the entire amount. The minimum due of 0.00 only means that they wont bug you until next month.

Answer 6

They are giving you credit for the payment which eliminates the minimum due. They want you to keep a balance since they make money on the interest. Your best bet is to pay the balance in full, and don't charge any more than you can pay in full each month.

Answer 7

Since you made the 200 payment that counts as your payment for the month. You won't owe anything else until next month.

Answer 8

You have no minimum payment this month because they recieved a payment within their parameters. Just read the bill, it's pretty straightforward.

Your next bill will show a minimum payment, unless you pay again like you did this time.

Answer 9

you have it correct, there is nothing else to pay this month. When you get your next statement it will indicate how much you have to pay.

Good to check your account info on-line on a regular basis.

Even better is to make sure you pay off your ENTIRE credit card amount every month. That way the CC company doesn't make any money off you.

Answer 10

yup that's correct. you don't owe anything since you made a payment for the first cycle. i mean it would be nice if you could just pay the rest off so that you won't get charged interest. but yeah if you dont' go it then just pay next month.