4

I tried reading related questions, but I can't seem to digest how credit cards really works.

Here is the scenario:
Credit limit: 15,000.

Statement:
Period: (24-Nov-2016 to 23-Dec-2016): 9000 full amount to repay
Due date: 19-Jan-2017

Let's say I do the following transactions:

  • 27/12/2016: -5600 (purchase) --> balance: -14,600 (available credit: 400)
  • 15/01/2017: +9100 (repayment) --> balance: -5,500
  • 17/01/2017: -700 (purchase) --> balance: -6,200

No more transactions, and due date 19th Jan comes.
What just happened here?
Did I repay the Credit Card in full or did I only pay 8800?

7

There's a difference between the statement balance and the full balance.

You have paid off (more than) the statement balance, which is all that was due, but you have not paid off the full balance.

If you have a grace period on purchases, then you need only pay the statement balance in full by the due date to avoid interest charges.

Often the card's automatic payment options will reflect this, as they tend to be limited to paying only the minimum or paying the statement balance.

Some cards have additional options like paying the full balance, a fixed dollar amount, etc.

  • This is correct. – Pete B. Jan 3 '17 at 15:31
  • does it have an effect on my credit score if I don't pay the full balance? unless I hit the credit limit in a statement balance, I will never at any point have available credit of 15, 000 if I keep paying statement balance. Interesting :) – waitforit Jan 3 '17 at 15:48
  • @no0b in a permanent way? No. But from personal experience I can confirm it will have some effect on your score because it changes your available credit and thus your percentage of available credit used. The effect I've noticed is small, but if you're going to borrow and want to squeeze every last point out, you might want to start paying the full balance several months in advance. The data in the report is a snapshot from some point in time so whatever your balance is when the cards report to the agencies is what it will show up as. It might not be worth worrying about. – briantist Jan 3 '17 at 16:22
3

You have repaid in full. Rather more than full as you paid 100 more than required.

The transaction from 24-Dec to 23-Jan will be due by 19-Feb.

It is to be noted if you don't pay in full, transactions will be charged interest immediately.

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