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Author: jin210 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308787  
Subject: Credit card grace period?? Date: 4/17/2002 4:28 PM
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hi,
grace period is a time period where i can charge as much as i want as long as i pay in full within that time period and i won't be charged interest, right?

for example,
my MBNA has 25 days grace period. from day 1-24, i charge up $5000. my payment for $5000 goes through on day 24 then i won't be charged any interest, right?
if i paid the $5000 on day 26, then will i be charged for 26 days interest or 1 day interest?

thx
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Author: frissy Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 123005 of 308787
Subject: Re: Credit card grace period?? Date: 4/17/2002 4:32 PM
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I thought the grace period was the amount of time you had to pay off your old balance (from last month) before you start accruing interest on your new purchases....

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Author: TamarianG Big red star, 1000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 123011 of 308787
Subject: Re: Credit card grace period?? Date: 4/17/2002 4:54 PM
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I thought the grace period was the amount of time you had to pay off your old balance (from last month) before you start accruing interest on your new purchases....

Well, actually, the way I understand it on most of MY cards (which means, your mileage may vary usual disclosure blah blah blah), if I carry any balance whatsoever from month to month, interest begins accruing the instant I make the purchase. If I pay in full every month by the due date, no interest on either last month OR this month's charges. But if I allow so much as $0.01 to carry over to the next month, I pay interest on all new purchases from the instant the store modem gets handshake with the CC company's.

Onward!
Tamarian

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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 123013 of 308787
Subject: Re: Credit card grace period?? Date: 4/17/2002 5:00 PM
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It's like this:
You have a brand new credit card.
You charge whatever, less than your limit.
On the 10th of the next month, for example, they send you a bill, which you get on the 13th. It lists all your purchases and says, for example, that you are to pay a minimum payment by the 30th.
There is therefore a 20 day "grace period" between when they sent the bill and when you must pay.
If you don't want to pay interest, you must pay in full, the whole amount, by the due date, the 30th in the example.
If you don't want penalty fees, you must pay the "minimum payment".
If you pay less than the full amount, the next and subsequent months until your balance is zero, there is NO grace period, interest starts accruing from the moment of purchase.
An exception is the Optima "True Grace" card, which gives you a "grace period" for new purchases even if you are carrying a balance.
Clear? Best wishes, Chris

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Author: jin210 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 123034 of 308787
Subject: Re: Credit card grace period?? Date: 4/17/2002 6:15 PM
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thx crosen.

got another question for you guys.

lets say i have an 1% cash back card. if i purchase $1000 worth of stuff and pay it back before the grace period, then can i still get 1% cash back? depends on the credit card but in general. i'm thinking... 1% cash back on all purchases so i will get that $10.

thx.

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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 123037 of 308787
Subject: Re: Credit card grace period?? Date: 4/17/2002 6:56 PM
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"lets say i have an 1% cash back card. if i purchase $1000 worth of stuff and pay it back before the grace period, then can i still get 1% cash back? depends on the credit card but in general. i'm thinking... 1% cash back on all purchases so i will get that $10. "

Right. You never have to pay a cent of interest to get that 1% or whatever the amount may be back. To charge on a cash-back card items you had to buy anyway (groceries?) and reap the reward, but always pay the full balance by the due date is the way to turn the system to YOUR advantage. Go for it!
Best wishes, Chris

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Author: jin210 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 123039 of 308787
Subject: Re: Credit card grace period?? Date: 4/17/2002 7:19 PM
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thx crosen... you are the true credit card MASTER!!!

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Author: RossB75 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 123141 of 308787
Subject: Re: Credit card grace period?? Date: 4/18/2002 3:11 PM
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About the %1 back. Most credit cards (all?) have a 'ramp' up where you have to spend over X to start getting 1%.
Like .25% back until you spend 1000
.50% for 1000-3000
1% for 3000+.

So you'll have to find the card with the best ramp up.

I'm getting back $200 from discover this year.

-RossB

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