Suppose You Have a Credit Card Bill of $1,275 for the Month of October. If You Pay the Full Balance Before Your Bill is Due....Answer Explained
by Niranjani
Updated Oct 17, 2023
Suppose You Have a Credit Card Bill of $1,275 for the Month of October. If You Pay the Full Balance Before Your Bill is Due, How Much Will You Pay in Interest?
If you pay your credit card bill in full before the due date, you won't have to pay any extra money for using your card.
Credit card companies usually give you some time, about 21 to 25 days, to pay off what you owe without any added charges. This time is called the "interest-free period."
But, not all types of transactions get this special time. For example, when you take out cash using your credit card, you might start paying extra right away.
Here's a simple chart to show how it works:
It's important to remember that this is assuming you didn't owe money from the previous month. If you did, you might have to pay extra on everything, even new stuff you buy.
To be sure about how it all works, you should read the papers that came with your credit card or ask the company that gave it to you for the exact rules about paying interest.
