Tag Archive | “Grace Period”

Managing Your Cards: Guide to Read Your Monthly Statements – Part 2

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In my previous post I have discussed few parts of your monthly credit card statement and here in this article I am explaining the rest of them.

Grace Period:

It is a common question that how long do we have to pay our bill in full before we are charged interest?


The answer to this question is that if a balance is carried by you then you usually don’t have a grace period, and on new purchases interest accrues immediately. There is also a lack of grace periods for cash advances and balance transfers. For details you can check your credit card agreement.

Minimum Payment:

The lowest amount you can pay on your bill is referred to as minimum payments. Usually it 2% to 2.5% of the balance, though for some credit cards it could be as high as 3% to 4%.

Due/Pay-by Date:

Due/Pay-by date is that date on which your payment has to be recorded in the credit card company’s computer. You should remember that it’s not the date when your bill has to be postmarked, or it’s not even that date when the payment arrives at the company’s office. Typically, the bill cycle comprises of 29 to 31 days, and usually the payment is due 20 to 30 days from the date when the bill was printed.

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Match Your Card and Lifestyle: How do you plan your Payments?

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When it comes to choosing and using a credit card, then one of the key decisions that you’ll make is that whether you will pay your bill in total every month or just pay off part of it.

To know your “payment profile” is really very important for you.

There will be a balance left in case if you pay off just the minimum or even most of what’s due. So in order to know where you really stand, you’ll need to know that what interest rate is charged by your credit card to what’s not paid and it is also necessary to know that what you’ll be paying to maintain an unpaid balance.

Analyze your Credit History


Fees is applied by card companies to a number of card uses — for instance a late fee, or an over-the-limit fee. Before you go any further honestly take a look at your own credit history and analyze that which problems or habits are most likely to arise in your card use. You should be honest with yourself – have you missed payment deadlines more than you would have ever like? If yes than you should not select a card where the interest rate shoots up whenever you miss a payment.

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Understanding Credit Card Terms (Glossary)

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It is a good way to understand credit card terms so that you may stay one step ahead. If you are able to read a credit card application and completely understand all the terms of agreement on your card you’ll be in better form to use your cards with whole responsibility and you may also avoid falling into the credit card debt trap.


Here in this article we are presenting you a glossary of the most common credit card terms that could really help you with your credit card education:

Adjusted Balance Method

Adjusted Balance method is a formula that many card issuers use for the purpose of calculating the amount of your monthly payment. During the month the payments that you made to the credit card account is subtracted from the balance, and finance charges are added on to get the adjusted balance.

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December 2010
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