titser_marco wrote:Question about credit cards (yeah, im a noob):
1. If I pay only say, a bit above the minimum monthly due, and then I pay whatever balance is remaining before the NEXT billing date, will I incur extra charges and/or interest?
ive workd for 2 card companies for 3 yrs na and this is how almost all card companies here in the phil compute their interest:
amount multiplied by the # of days and then multiplied by the interest rate and finally after multiplying divide it by 30..
(amount) x (# of days) x (interest)
____________________________
30
legend:
*amount = the amount of the item u bought or amount of the payment/credit from your present statement of acct
*# of days = is the # of days from the day u bought the item up to the day the interest was charged or the # of days when ur payment has posted up to the date of the statement of acct
*interest = is the interest rate of the bank
30 = 30 days in a month
A. ALL transactions from ur previous statement of acct will be charged for interest from the date that u bought the item up to ur current statement of acct and
b. all the credits/payments from ur
current statement of acct will be computed for interest and it will used to deduct from the overall interest of
Ac. add all of the interest derived from ur previous statement of acct and
d. subtract it from all the interest that was derived from ur payments/credits from ur present statement of acct.
tips:
1. u can pay the atleast the minimum amount due on or before the due date and u wont get charge late fees but u get charged for interest..
2. ur payment amount and payment date would is a factor in computing the intereset..
3. if u pay the
full amount on or before the due date u wont get charged interest!!
4. buy an item a few days after ur cut off date (the date when they make ur statement) so that u can maximize ur time to earn money and pay for the statement in full.. but if u cant pay it in full mas malaki yung interest kasi maaga mo siya binili. heheheh
hope this helps..