I'm confused, does everyone think that you accrue interest just by having a statement balance?
No, but most people are too stupid to keep track of their last 30 days and end up paying interest unnecessarily.
Soviet_Poland posted...
_Rinku_ posted...
"Keeping a balance" is a myth meant to trick you into paying interest.
When people say "keeping a balance", they mean paying the statement balance, not your TOTAL balance.
They can't charge you interest on any charge made less than 30 days ago. Since your statement balance is the SUM of your total charges in the past 30 day charges, but the DUE DATE is a few days/week or two past the STATEMENT BALANCE, any new charges made after the statement balance aren't included in interest charges.
Example, you buy a TV for $400 on the 1st. On the 30th, you have a statement balance of $400 (you didn't buy anything else the rest of the month). The due date is on the 12th, but on the 9th you bought a PS4 for $200.
Your total account balance is $600, but your amount due on the 12th is only $400. Even though you're "keeping a balance" of $200, that doesn't get charged interest, unless you keep that balance past the NEXT statement balance.
Thank you, I know exactly how interest accrues. Again, most people are too stupid to get this and "Don't keep a balance" is easier than trying to ram this into their heads.