Home > Credit Cards >
Credit Card Billing > Things You Need to Know About Your Credit Card Billing Statement
Things You Need to Know About Your Credit Card Billing Statement |
|
Understanding credit card billing can be confusing, since you often need to know much more than what your current balance is. Below are some of the first problems you can run into when dealing with credit card billing practices. The Difference Between 'Revolving' & 'Charge' When it comes to credit card billing, there are two types of credit cards: revolving and charge. With a revolving account, you will be able to pay as little as the minimum payment or as much as the full balance on each credit card billing statement. This offers flexibility during a time when you just can't pay the entire balance off. This type of card is also good for financing large purchases. With a charge account, you will be required to pay off the entire balance on each credit card billing statement. This offers no flexibility, but also forces you to buy only the items that you know you can pay for within a month's time. The Difference Between Late & 30 Days Late In the world of credit, there are distinct differences between 'lates'. If you pay 1-29 days after the due date listed on your credit card billing statement, you should only receive a late fee and possible interest or credit limit ramifications from that issuing bank. If you pay 30 days or more after the due date listed on your credit card billing statement, you will likely receive a '30+ days' late on your credit report. This can trigger possible interest or credit limit ramifications from other issuing banks that you currently have cards with. How Late Payments Can Affect Credit Card Billing on Your Other Accounts If you have a late loan or credit card payment recorded on your credit report, it can affect your other cards. Many cards have a 'universal default' policy where, if you receive a late payment from another account on your report, they have the right to raise your interest rate to the default APR -- which is often upwards of 20%-25% or more -- even if you were under a 0% promotion before. This can make the balance on your credit card rise very quickly if you do not pay off that balance immediately after the universal default policy is used against you. The Lowdown on Payment Methods There are a few ways you can pay the balance or minimum payment on your credit card -- and some ways you cannot. You need to be aware of these methods before you go to pay on your next credit card billing statement, or else it could cost you a late fee. The two best ways to make a payment towards your credit card balance is to pay with a money order or bank draft. These will both be accepted by the creditor immediately upon receipt. The other way to make a payment towards your credit card is to pay by check. This can be slow and you should send the payment in at least two weeks in advance, since you will have to consider mailing time and the 7-10 days that the creditor may hold the check to make sure it clears. The two ways you cannot make a payment towards your credit card billing statement are cash and debit/credit card. You can, however, do a balance transfer to another card. This may or may not count as your 'payment' and can take several weeks. This short guide will hopefully help you understand your credit card billing statement a little better and avoid future surprises, fees, and blemishes on your credit report. |
|
| ------------------------ |
|---|
|
|
| ------------------------ |
|---|
|
|
|
|
| ------------------------ |
|---|
|
| ------------------------ |
|---|
Custom Search
|
| ------------------------ |
|---|
|
|
| ------------------------ |
|---|
Consumer Alerts | About | Bookmark Us | Contact | Espanol | Privacy Statement | Copyright | Terms & Conditions | Financial Widgets | SiteMap
Copyright © 2006 Credit Loan, LLC. 235 APOLLO BEACH BLVD, STE 218 Apollo Beach, Florida 33572 All rights reserved.
Disclaimer: The content provided on CreditLoan.com is for informational purposes only; do not make any financial decisions based on its content. Financial decisions are personal, based on an individual's situation. Consult with a financial professional before making any financial decisions. CreditLoan.com is not liable for your financial actions.
