Since I got my card, i've been paying the full balance (or statement balance) every month. This month I got in a little over my head and I literally have $40 available on my card. Would it be best to just take the money out of my savings and pay the full balance, or should I just pay half? If I pay half, will the interest rate be just as high as if I were to pay the minimum balance?|||your interest rate won't change, if you can only pay off half now, then just pay off half and pay the other half next month.
You don't lose anything by carrying a balance, just as long as you're not late on your payments.|||well here is how interest rate (aka APR) works. At the end of the billing cycle they send you an amount due. If you don't pay it by the due date on the due date they charge you interest. So let's say you owe $100 and only pay $20. They would charge the monthly APR on the remaining $80. If you owe $100 and pay $50 you would pay the APR on the remaining $50.
So yeah I'd just pay what I can and then deal with one month of interest on the remaining and pay it off next month. Even IF your APR was 24% annual...one month of interest is only 2% (which is 1/12 of the total APR for one month interest) of the remaining balance amount...so it's not a huge amount.
Hope this helps.|||so long as you pay the minimum payment ON TIME, it won't affect your credit
interest rate% doesn't change, only the amount of the interest each month - which is based on your average daily balance
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment