Timeline for Is interest of credit cards caculated based on the amount unpaid within the grace period?
Current License: CC BY-SA 3.0
4 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Apr 22, 2012 at 23:47 | comment | added | Dilip Sarwate | @Tim 2) The credit-card company has paid the other credit-card company when the balance was transferred over. You are not going to pay off that amount for a year, and so that money is not earning any interest. So, when a partial payment comes in, they apply it to the transfer balance. If you are carrying a revolving balance, it is to the advantage of the credit-card company to make that revolution last as long as possible. So, apply the payment to the nonproductive amount; the rest will keep till next month and maybe the month after that and earn more interest for the credit-card company. | |
| Apr 22, 2012 at 23:36 | comment | added | Tim | Thanks! (1) I wonder what is the reasoning behind the order of the several things being paid? (2) "then transfer balances on which no interest is being charged and so the bank is losing money on it", Why "so the bank is losing money on it"? | |
| Apr 22, 2012 at 21:24 | history | edited | Dilip Sarwate | CC BY-SA 3.0 |
added 197 characters in body
|
| Apr 21, 2012 at 22:31 | history | answered | Dilip Sarwate | CC BY-SA 3.0 |