tag:blogger.com,1999:blog-37476114.post116474978351859647..comments2024-03-24T03:19:18.249-04:00Comments on An English Major's Money: Credit Card TidbitsEnglish Majorhttp://www.blogger.com/profile/00276582833751319518noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-37476114.post-1164771296095129822006-11-28T22:34:00.000-05:002006-11-28T22:34:00.000-05:00Since you are good about paying off your balance, ...Since you are good about paying off your balance, you may not be charged unless it is still sitting there at the end of the next month (many cards have a grace period if you you start the month paid off--check your agreement). <BR/><BR/>Otherwise they usually calculate it based on the average daily balance for the month. In your case this will be between $0 and $300. So it's still good that you keep it paid off because it will not stay at a high level, making the average lower. <BR/><BR/>Example: spend $50 on November 2 and $30 on November 7. Assume billing cycle starts November 1.<BR/><BR/>If you pay off the $50 on November 4, you have 0, 50, 50, 0, 0, 0, 30, for an average of 18.57 for the week.<BR/><BR/>If you wait until November 8, you have 0, 50, 50, 50, 50, 50, 80, for an average of 47.14.<BR/><BR/>Do this average using all the days of the billing cycle. Multiply that number by your APR and divide by 12 to get your finance charge.<BR/><BR/>Paul has a good point though--why not pay off the $6 if you can and not treat it as refunded until it's refunded?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-37476114.post-1164758765041353542006-11-28T19:06:00.000-05:002006-11-28T19:06:00.000-05:00Hi--I saw your blog post on pfblogs.org and though...Hi--I saw your blog post on pfblogs.org and thought I would comment on your situation--<BR/><BR/>If you're worried, why not pay the 5.95 and have it credited later? The worst that can come of it is that you have a starting balance of -5.95 for the next month after everything is credited. It's not worth worrying about if you can do this.<BR/><BR/>Secondly, why not open another credit card, with which you most likely have a much higher credit limit ($2000+ most likely)? This could just sit around, and will decrease your utilization no matter what.<BR/><BR/>Good luck!Anonymousnoreply@blogger.com