I have a credit card for which I receive my bill on the 24th. Payment is always due on the 18th of the following month. I also continue to use my credit card between 24th and the 18th. What interest am I being charged for that? Am I allowed to pay off the new balance?

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Posted by Fatima (MONEY FORUMS: 1, Answers: 0)
Asked on September 3, 2016 10:23 am
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In addition to the excellent information provided by Beth here are two additional considerations.

If you had no prior months balance and make a partial payment you will be charged interest on the unpaid portion from the date of purchase, there is no grace period applicable.

There is a big misconception that you must have at least a 21 day grace period. This is not true. Credit card companies can still issue cards which have no grace period. Zero. Interest from day one in all circumstances. Generally these cards are marketed to persons with very bad credit. If a credit card has a grace period then the grace period must be at least 21 days and you must have 21 days to pay the bill. This 21 days is spelled out two different ways in the law, but basically there has to be 21 days between billing and the due date for all cards and you have to have 21 days between when you receive the bill and when it is due for cards which have a grace period. Basically it comes down to knowing the provisions of your cardholder agreement. Verify that you have a grace period and if you don’t then it may be time to shop for a new credit card company to do business with.

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Posted by Peter Neeves (MONEY FORUMS: 1, Answers: 59)
Answered: September 13, 2016 3:32 pm
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If you are not carrying a balance from prior months, you have until the 18th to pay the balance showing on your bill and you won’t incur any interest regardless of what you spend between the 24th and the 18th of the following month. If you ARE carrying a balance from prior months, you will pay interest on the average daily balance during your billing cycle. If you do not pay in full when you pay on the 18th, you will be charged interest (through the average daily balance) on what you charge between the 24th of the previous month and the 18th. You can always pay more than the amount due on your bill (the balance at the time you pay) if you wish.

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Posted by Beth Tallman (MONEY FORUMS: 1, Answers: 61)
Answered: September 3, 2016 9:28 pm