If I charge an item to my credit card, am I charged interest immediately?

Question

My company asked if I could buy an item and put it on my car, and be reiumbursed in a couple of weeks.

Will interest affect this purchase?

Thanks

Thank you for all of the responses.

I was asked, not required to do this.

Answer 1

I'm just wondering why your company can't buy it with their own credit card or petty cash?

Answer 2

It depends on the contract you have with the card issuer. In most cases, if you are maintaining a balance on your card, you are charged interest on your average daily balance, so adding a purchase will increase your average balance and the interest you pay. If you are not maintaining a balance on your card, in most cases you get an interest free loan for about 25 days, the time it takes to pay your current balance.

Paying your monthly balance in full regularly not only avoids the interest but also generated a good credit rating. Maintaining a balance on your card and paying just a portion of the balance each month is the worst kind of debt you can have, with the highest possible interest rates allowed by law.

Answer 3

If you pay the entire new balance every month, there is usually no interest on purchases. If you are carrying a balance from the previous month, there may be immediate interest charges.

In any case, you may come out ahead on the deal, because of whatever points, airline miles, cashback bonus, etc., your card provides.

On the other hand, even if your employer fails to reimburse you, you will still be required to pay the credit card bill. If your employer fails to reimburse you, you will be out the money.

Answer 4

if you are at the beginning of your billing cycle and your company reimburses you and you pay the bill before the end of your billing cycle, then, no, you will not be charged interest on that purchase. Tell your company that if you do get charged interest because of their reimbursement time and your billing cycle, that you expect them to pay for the interest.

Or just tell them that you will not put it on a personal credit card and ask for a business card that you may use... that would be the safest bet. It all depends on how you feel about the company.

Answer 5

If the item is more than say $25, I wouldn't do it. You should not have to do this. Under law, you do not have to. You would only be charged interest if you carry a balance month-to-month. Your interest charge would probably be about $1 per month per $100 in purchases.

Answer 6

as long as you pay your balance in full every month or at least minimum due, every card has a grace period. This is period when interest is not charged on purchases. Typical grace period is 20 days. In general interest is not assessed on purchases if you pay on time. But at least 20 days I would say is safe

Answer 7

Depends on the card and the grace period they offer you. You can check out these cards on this website they explain everything to u in detail. You might find your card there and see for yourself.

http://bmr.ezcreditcardz.com

Answer 8

I wouldnt do it. But, I wouldnt get a credit card.
Once you put it on your card your in debt til its payed. Something happens and it doesnt get payed on time, or just doesnt get payed the interest starts.

Answer 9

You are not charged interest until the end of your fiscal month. so if you pay it off before you are charged, you will be fine.

Answer 10

Not if you pay it back before you receive the monthly bill.