I am beginning to build credit and got a credit card a few months ago, I am a little confused about when a payment should be made in order to avoid any late fees/penalties/interest. Here is a situation with made up numbers/dates:
Statement Date: 09/05/2010 Payment Due: 10/02/2010 Min. Pmt. Due: $15.00 Statement Balance: $50.00
The following day on 09/06/2010 I charged $100.00 onto the card which appeared on the website immediately, however the next statement will not go out until 10/05/2010.
On 09/24/2010 I paid the $50.00 balance from the first statement well before the due date.
I still have a $100.00 balance on the card, which I assume will be displayed on the 2nd statement and I will have until 11/02/2010 to pay it off in order to avoid all late fees/penalties/interest.
Is this true?
Now, if I understand this correctly, wouldn't it be logical to avoid paying basically as long as possible (as long as I do pay the card off in full before the due date)?
I feel as though I might not have been clear enough by the answers which I have received.
I am paying the credit card in full at the end of each cycle, but am confused. If I receive a statement on the 5th of the month and it says pay by the 2nd of NEXT month, then do I simply have to pay off the total amount which is shown on THAT statement in full in order to avoid the interest?
The reason I am confused is if I put something on the card very soon after I receive the statement, say the next day, it actually won't appear until the following statement, and won't be paid off until 30+ days after I made the purchase.
I feel as though the confusing factor is viewing my current balance online instead of simply waiting for the statement each month.