Credit card billing/interest question

Discussion in 'General Discussion | Credit Cards' started by jools1006, Jun 23, 2012.  |  Print Topic

  1. jools1006

    jools1006 Silver Member

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    If your credit card statement is generated before a (rather large) return shows up, should I:

    A. Still pay the full statement amount and realize the credit on the next statement
    B. Pay the statement amount minus the amount of the return

    The goal is to avoid being charged interest. The contention is that if you pay anything less than the statement amount, interest will be charged.


    Thanks in advance, MP'ers.
    I always pay my cards off in full regardless, but this was a point of discussion earlier.
     
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  2. wrxmom

    wrxmom Gold Member

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    Pay it in full and realize the credit next statement as most issuers go with the statement balance.

    If the card is AMEX, they automatically adjust so you pay any remaining balance.
     
  3. LizzyDragon84
    Original Member

    LizzyDragon84 Gold Member

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    I agree with wrxmom- pay the statement balance in full and wait for the credit to post on the next statement. If you're willing to post which bank the card is with, someone here can probably say exactly how that bank deals with the situation.
     
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  4. MX

    MX Gold Member

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    Most credit card agreements consider "payment in full" to include all external credits to your account before the due date. So your Option B is enough to let you avoid interest charges.
    You can still go with Option A for an extra peace of mind. Your idle cash is probably not earning you much interest anyways.
     
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  5. marcwint55

    marcwint55 Gold Member

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    to be safe, I would call the issuer and ask for clarification on their policy as it varies.
     
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  6. jwsky
    Original Member

    jwsky Silver Member

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    For myself, I avoid cutting it too close. It seems that often when I get too tricky or exact with my credit cards, i get burned. Then, bam, a $35 penalty. Play it safe. Pay the full amount with automatic payments.
     
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  7. jools1006

    jools1006 Silver Member

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    It's Chase - we use the BA Visa, Sapphire Preferred and Freedom extensively every month so this scenario occurs every month with all cards.

    I always pay the statement balance in full regardless.
     

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