Citicards_ even if you pay in full your statement there is interest?
Jan 18, 2010, 7:26 pm
#1
Original Poster
Join Date: Mar 2000
Posts: 5,651
Citicards_ even if you pay in full your statement there is interest?
What Citi sent as explanation:
"Finance charges for purchases, balance transfers and cash advances will begin to accrue from the date the transaction is added to your balance. They will continue to accrue until payment in full is credited to your account.
This means that when you make your final payment on these balances, you will pay interest for the time between the date your last statement prints and the date your payment is credited to your account."
"Finance charges for purchases, balance transfers and cash advances will begin to accrue from the date the transaction is added to your balance. They will continue to accrue until payment in full is credited to your account.
This means that when you make your final payment on these balances, you will pay interest for the time between the date your last statement prints and the date your payment is credited to your account."
Jan 18, 2010, 7:36 pm
#2
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,760
The interest always start to accrue the moment you make a transaction. However the accrued interest will be waived if the balance is paid in full on the due date of the prior statement.
This type of language is on virtually ALL credit cards but hardly anyone ever reads it and most everyone ASSUMES that there is no interest when the statement is paid in full every cycle.
There is ACCRUED interest which is waived when statement is paid in full by due date. It is fundamentally different from there is no interest (which does not exist in CC world). However the outcome seems to be the same to most people not reading the fine print.
The Citi explanation is to explain that when someone has an unpaid balance on previous statement therefore the ACCRUED interest will not be waived. For someone who accidentally carries a balance on a card, it would be far better to STOP using that card until AFTER the billing cycle when all prior interests have been paid in full and an absolute 0 balance shown on the statement.
If you google "double billing cycles" you would learn more than you want to on this topic.
This type of language is on virtually ALL credit cards but hardly anyone ever reads it and most everyone ASSUMES that there is no interest when the statement is paid in full every cycle.
There is ACCRUED interest which is waived when statement is paid in full by due date. It is fundamentally different from there is no interest (which does not exist in CC world). However the outcome seems to be the same to most people not reading the fine print.
The Citi explanation is to explain that when someone has an unpaid balance on previous statement therefore the ACCRUED interest will not be waived. For someone who accidentally carries a balance on a card, it would be far better to STOP using that card until AFTER the billing cycle when all prior interests have been paid in full and an absolute 0 balance shown on the statement.
If you google "double billing cycles" you would learn more than you want to on this topic.
Last edited by Happy; Jan 18, 2010 at 7:42 pm
Jan 18, 2010, 7:40 pm
#3
Join Date: Sep 2008
Location: San Diego
Programs: Anything that gives nice sign up bonuses
Posts: 120
If you pay in full, the interest is waived. However if you carry a balance one month and then pay in full the following month you will still pay interest. It takes two months of paying in full to get the interest waived again.