Credit cards (1 Viewer)

[synthesized]

can someone please explain the basics of having a credit card account?

- when you make a purchase on credit, how do you figure out the minimum amount that has to be repaid for this transaction and how long you have to do so?

- is interest on credit purchased calculated daily or monthly?

 

[mr_brightside]

can someone please explain the basics of having a credit card account?

- when you make a purchase on credit, how do you figure out the minimum amount that has to be repaid for this transaction and how long you have to do so?

- is interest on credit purchased calculated daily or monthly?

1. They send you a credit card statement with the minimum amount to be repaid. In terms of the interest free period, you have however long that that particular card allows. Some are 30 days, some are 55 days, etc.

2. compounded daily.

 

[iamsickofyear12]

The minimum is fairly small. I don't know how to figure it out per transaction, but for example one month I spent something like $1100 and the minimum due was $23. For my $4000 limit the highest it can ever be is something like $80 I think.

The time you have to pay for depends on what statement cycle you make the purchase in. I get my bill around the 20th of every month and that includes the last 28 - 31 days. I then have about 3 weeks to pay it. So for example, if I buy something on the 19th of October I would need to pay for it on the 15th of November, but if I buy it on the 21st I wouldn't need to pay for it until the 15th December.

 

[katie_tully]

yeah you get a monthly statement which has the minimum amount
if u can, pay more than the minimum, coz the minimum is designed so that after the interest free period you still owe them money which then starts to accrue interest.
mines 55 days interest free, but ive only had it for 2 days.

 

[iamsickofyear12]

I only have a credit card so I don't need to carry around heaps of cash/go to the ATM constantly/remember my pin number... I only really use it on petrol and I always pay it on time. I am a horrible customer for Virgin because I don't make them any money.

 

[jase_]

Minimum amount calculations are usually in your T&C of your credit card account. It is usually like a few % of your outstandating balance or like $10 if your balance is pretty low. The amount is due on the date it says so on your bill (which is about 2-4 weeks after you get your bill). On a $3000 debt, this is usually around $90 per month. Interest accrues daily. It also accrues on cash advances and balance transfers (which have passed their promo period) before any purchases. It accrues on purchases in the order they appear on your statement, hence you should keep track of when you buy things and ensure it is paid off within 55 days (or whatever your interest free period is) if you don't want any interest.

 

[^CoSMic DoRiS^^]

I only have a credit card so I don't need to carry around heaps of cash/go to the ATM constantly/remember my pin number... I only really use it on petrol and I always pay it on time. I am a horrible customer for Virgin because I don't make them any money.

lol i wish i had that sort of self control. i'll probably never get a credit card at all, or i'll end up as one of those shock sob-stories on today tonight about youth credit card debt :S