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Jordan1017

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Paying credit card, but having a new balance? Charged interest?
New card is used daily, and I received my first statement. I'll use an example, I received my statement where on the bill it said total balance was $200. I went online and paid the $200, but another transaction cleared for $50, so my balance total (not statement balance,) was $250. By bringing the current balance to $50, how are my payments applied and will it generate interest? Essentially did I only pay $150 towards my statement balance and then $50 for current balance leaving $50 left from last statement?

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Okay, the comparison between online and paper statements can be confusing until you understand the closing date.  When you paid the total due on the statement you got, that was excellent.  Something to strive for every month.  You aren't paying interest on it.

Now,  that $50 that showed up was something that registered online after the closing date which is---the date the credit card company totals all charges for the period to prepare the statement. That $50 will be on your next statement which will also show the $200 payment you made.  You will not accrue any interest on that $50 for this period.  Payments are applied to oldest balance first (should there be any, which you don't have) and then to the newer amounts.

You did just perfect by paying the balance shown on the statement in full and got it in before the due date. Keep that up and you'll be doing great!

Just in case (and things do happen) you have to charge more than you can get paid in full when the statement comes in, pay the largest amount you can comfortably afford every month until the balance is paid in full.  Keeping accounts paid in full as quickly as possibleshould be your goal   

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