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luckydriver

even with PIF i'm getting interest. what am i doing wrong

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i was revolving cap one for a while then a few months ago i paid it off (my definition is paying off is paying off entire new balance instead of just min. payment)

 

in the succeeding months ive been charging like crazy but pay MORE than the new balance always. yet i'm still being charged interest.  so must you have one solid month of no usage at all to get no interest? i thought paying the entire new balance or even more should prevent me from paying no interest but obviously i'm mistaken. whats the secret formula?

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In order to get no interest, you need to PIF for multiple months in a row as the balance will continue to accumulate interest during the following billing cycle and you lose your grace period.  If you pay your entire balance in full for 3 consecutive statements after that you shouldn't accumulate any additional interest, unless your card has no grace period (which is unlikely unless it is a bottom feeder).  Here is a pretty solid explanation:

 

https://www.creditcards.com/credit-card-news/grace-period-avoid-paying-interest.php

Edited by CTSoxFan

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When you have paid the balance in full, have you been doing so PRIOR to the due date?  Through the years here at CB, there have been some that made A payment prior to the due date but did not zero the balance until right before the new statement cut.  If there had been a balance being revolved prior to that statement, such a practice generates interest even though the balance is paid in full. 

 

You should not have to go multiple cycles.  However, I WOULD recommend paying the balance in full prior to the due date and making NO purchases on THAT card during the cycle.  This way, the card is paid in full and has no new purchases, so it is a true zeroing of the balance by the due date.  Once the new statement has cut, then go back to using the card as you like, ensuring that no balances are revolved...whatever the balance is on the new statement is the minimum that you want to ensure is paid prior to the new statement due date (not to be confused with the closing date). 

 

Something else to look at is to make sure it is not one of the subprime products that always charges interest from the date a transaction posts to the account...there are not many of those turds, but they DO exist out there. 

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Pay a few bucks more. The interest shows up when the statement cuts. You can estimate what that is by looking at a few of the earlier statements and pay accordingly. So what if you have a credit balance?

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Brief summary of events (with some  rounding) and you can plainly see I paid more than new balance all the time. And the one month with 2121 new balance I had no interest . why is this? then next month back up to 53 interest even though i paid more than prev bal. 

 

Aug 19 statement. Prev balance 3568

Payment 3985

Transactions 406

Int 56

New balance 46

 

Sept 19 statement prev balance 46

Payments 5145

Trans. 7305

Credit 83

Interest 0

New balance 2121

 

Oct 19

Prev bal 2121

Payment 2225

Credit 139

Trans 1073

Int 53

New balance 883

 

Nov 19 prev bal 883

Payment 2695

Trans 1883

Fee 39

Int11

New balance 122

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Either there is no grace period on your account or the issuer is charging interest by mistake. Call them and talk to account specialist. Something is off here...

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Also, what was the fee for?  Were you late in paying? 

 

If the CS can't help you figure it out, best bet is to stop using the card for a month or two.  Stop using a few days before statement cuts (so there are no pending charges that post after the statement cuts).  PIF the entire balance by the due date.  Let the next statement cut.  There may be trailing interest, pay that amount in full, still not using the cards.  Once the statement cuts with a fully $0 balance, you can start re-using.  This is the most drawn out way to handle it, but will be sure you are back to getting your grace period.  Be sure that if you have any recurring charges on that card you cancel those.

Edited by CTSoxFan

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Not discussed in that list is WHEN the payment was due and what day the payment that was made had posted. 

 

There is more to the process than simply MAKING a payment.  The WHEN is ALSO very important. 

 

The language in the Agreement will speak to the specifics.  I don't bank with CrapOne (for M/VC purposes) so I do not know what precise language they have in their contracts nowadays.  My store cards (NM and Saks) begin a month at zero, sit at zero for multiple months and any purchase is paid in full prior to the statement close...

 

However, I still hold to my earlier comment that it is best to zero the card out and have no activity on it for the month.  You then KNOW that you are starting a cycle with a clean slate. 

Edited by centex

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2 hours ago, centex said:

...it is best to zero the card out and have no activity on it for the month. 

This!

 

1. Push an overpayment sufficient to cover any interest BEFORE the closing date. The statement will then report a $0 or negative balance.

 

2. Then you need to sock drawer the card for an entire billing cycle. Any charges during the next cycle will accrue interest from day 1, so just use a different card. If you accidently use it, over-PIF immediately to stop the interest!

 

3. After the 2nd closing reports $0 or less, you will have reset the grace period.

 

IOW, if you ever carry a balance you render that card useless for the next billing cycle.

 

 

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No question in my mind that the min payment due prior to the Nov stmt wasn't received in time, starting the interest treadmill all over again.

 

Outside of that, typically, paying 2 consecutive statements in full by the due date each month is sufficient to stop trailing interest.

Edited by hdporter

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36 minutes ago, hdporter said:

No question in my mind that the min payment due prior to the Nov stmt wasn't received in time, starting the interest treadmill all over again.

I think the $39 was probably an AF, not a late fee (which means OP should either PC the card or ask to have the AF waived in the future). Cap1 should be amenable to this because OP has been a profitable customer!

36 minutes ago, hdporter said:

Outside of that, typically, paying 2 consecutive statements in full by the due date each month is sufficient to stop trailing interest.

That will definitely work. BUT, there is a second issue:

 

You will still pay interest from the day of purchase during the 2nd cycle. So you really should keep the balance at or below $0 for the next month.

 

The easiest way to solve both problems is what Centex recommended: zero the card out and don't use it for the next month. If you MUST use it, pushing an overpayment BEFORE any charges will keep the daily balance below $0 and avoid any interest.

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i have things on auto pay so i dont wanna change them. so sounds like i just need to keep a credit balance at all times for at least a month or 2 then ill be good going forward?

 

ill switch to my 1% card for all other activity since that has zero on it. i can forgo .5% lol

 

was thinking of doing the double citi card but i'm probably still blacklisted from 05

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7 hours ago, luckydriver said:

i have things on auto pay so i dont wanna change them. so sounds like i just need to keep a credit balance at all times for at least a month or 2 then ill be good going forward?

 

ill switch to my 1% card for all other activity since that has zero on it. i can forgo .5% lol

 

was thinking of doing the double citi card but i'm probably still blacklisted from 05

Good plan.

 

It sounds like you have the QS1 with $39 AF. Have you tried to upgrade to the no-fee version? You can check for upgrade offers here:

https://verified.capitalone.com/sic-ui/#/esignin?Product=Card&Action=ProductUpgrade

And it couldn't hurt to could check for Citi pre-quals here:
https://www.citicards.com/cards/credit/application/flow.action?isInvitation=N

 

Even if you don't find a pre-qualified offer, it couldn't hurt to app. It's only 1 inq and 2005 was a long time ago... maybe you are off the blacklist!

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11 hours ago, luckydriver said:

i have things on auto pay so i dont wanna change them. so sounds like i just need to keep a credit balance at all times for at least a month or 2 then ill be good going forward?

 

ill switch to my 1% card for all other activity since that has zero on it. i can forgo .5% lol

 

was thinking of doing the double citi card but i'm probably still blacklisted from 05

A 1.5% card pays 50% more than a 1% card.  Once you have the interest problem fixed, go back to the higher rewards.

 

Can you get a 2% card (or better)?

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When is your payment due date and what dates & amounts did you make your payments. If you dont pay the balance in full by the payment due date you pay interest. Read page 2 of your statement.

Sent from my SM-N950U using Tapatalk

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i had no idea u could do upgrades..guess i have nothign to lose, got offered this:

Venture One®

Travelers earn 1.25 miles for every dollar spent

  • No application required
  • Same account and card number
  • 24.65% Variable APR remains unchanged
  • $3,500 Credit line remains unchanged
  • Please note, this upgrade doesn't include promotional offers or bonuses that are for new customers only

 

except i dont get the 20k bonus new customers get.  i do travel 4 or 5 times a year but i will only be putting a few hundred thru this card if i get it. so it wouldnt really be useful to me. i got a 5% gas card recently and put 500 on that a month. so unsure is worth it to ditch the 39AF 1.5% card since for venture i really wouldnt be benefiting. or should i look at it that since there's no AF i'm saving that and not worry about the lack of good travel compared to the citi card.

 

citi preapprove site says

we couldn't match your records to a Pre-Qualified credit card offer. See below for 2 other cards you may like.

 

and they had the 2x card up top on the page then below premier and simplicity.

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i never heard of bbva compass but they just sent me an offer for 100 bucks after 1500 in 90 days purchases and 0 percent 13 months bt (4% fee ouch) but also on purchases. but it says pre qualified not pre approved.

 

so how much fun to evaluate all these options..sigh.  i could defer my 500 in gas on my 5% since the new card would get me 100 vs 75 for the 1500 in gas id spend.

 

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Look at the $39 AF this way: You have another 1% card, so you only get an extra 0.5% on the Quicksilver. To break even on the $39 you need to spend $7800/yr at 1.5% instead of 1%.

 

Cash back is better than Venture miles, but if it was me I'd take the "upgrade" anyway. I would want to keep the age and history but get rid of the AF. Then I'd only use the Venture1 enough to keep it active.

 

I don't know if Cap 1 pro rates the AF when you upgrade though. If not, you might as well keep the 1.5% till next fall anyway.

 

The Citi Double Cash is a much better card, 2% (if you always PIF), no AF, and I think a $150 SUB after $500 spend... so 32% on your first $500. If your scores are decent and there's no BK on your reports it couldn't hurt to app. I'd be surprised if you are still on the blacklist after 14 years, but there's only one way to find out. There is a master blacklist thread by BobWang you should look at.

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BK in 14 too (not on citi of course) so thats on there for a while yet. i guess i can chat with cap 1 and see if prorate the fee otherwise keep it a while. 

 

not that i want the 3 pulls but i'm genuinely curious if i let them pull me as a 'new' customer if id get the bonus miles. $200 would be nice.  and i can easily do 1000 in new purchases in my sleep.

 

citi double would be nice if i could get it but stinks no sign up bonus. at least not here there isnt.

 

 

https://www.citi.com/credit-cards/credit-card-details/citi.action?ID=citi-double-cash-credit-card

 

i was theoretically approved for a citi exxon card just recently but they couldnt verify my identity so wouldnt give it to me. they said since i used a prepaid cell they cannot prove who i am and were adamant theres no other way for me to prove my identity. but still since it wasnt rejected for BK /low score etc. i'm assuming those reasons werent on the table but it makes me shy about pulling for them. 

 

 

Edited by luckydriver

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I also wanted to post these scores to see if you think id get the citi.

Discover fico 646

Cap 1 fico 730

Paypal fico 656

Psecu fico 691

Dcu fico 687

Omitted CK and CS scores but they were nice!

I have virtually zero CC debt now. Its all in heloc and car loan.

 

'14 BK

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