Monday, December 12, 2011

What is the difference between my billing cycle and due date?

so my credit card bill due date was 9/28 (yesterday) and my statement says my next billing cycle starts 10/3. I paid it off on the 26th. So can someone please explain to me, if i use my card say today or tomorrow does that charge go to my october statement or september statement? And if it is still on september statement will i be charged interest on the transaction after the due date? This is my first credit card and I'm trying to take every precaution so I don't fall into a trap and Im just making sure I understand everything THANK!|||Good job making a payment before the due date! Most credit cards do not charge interest if you pay the entire balance showing on the statement by the due date (check the terms of the card to be sure). Typically statements cover about a month's transactions and payment due dates are weeks after the statement end date. If your payment was less than the entire balance, interest will accrue on that balance plus any purchases since then. It sounds like the next statement will cover transactions through 10/2, so purchasing before then will be included on that statement. The best way to use a credit card is to keep the statement balance below 30% of the credit limit and pay the entire balance before the due date each month; this builds credit history and avoids interest fees.

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