Credit Card Question

[ScottulusMaximus]

I've read this thread before, I'm sure it was asked by our dear friend Ockie.

I want to move all my daily swipes etc across to my CC, then keep the money in an interest bearing account, CC swipes are free and an extra 4-5% wouldn't go amiss. It's an up to 60 days interest free card, I understand all that, I'm confused about re-payments.

Say I spend the following:

Month 1:
Week 1 R100
Week 2 R100
Week 3 R100
Week 4 R100

Balance owing after month 1 = R400, interest free till end of month 2, no payment into card yet.

Month 2:
Week 1 R100
Week 2 R100
Week 3 R100
Week 4 R100

Balance owing after month 2 = R800, R400 interest free till end of month 3 and R400 from month 1 charged for.

How much would I need to pay into the account in order not to be charged interest? R400 or R800? Basically is the card "smart" enough to know which payments to charge interest on after a certain amount of time whilst leaving the later "interest free' payments alone.

Or am I being thick here?

I have the discipline and record keeping skills to ensure I don't overspend etc etc

 

[Gtx Gaming]

I've read this thread before, I'm sure it was asked by our dear friend Ockie.

I want to move all my daily swipes etc across to my CC, then keep the money in an interest bearing account, CC swipes are free and an extra 4-5% wouldn't go amiss. It's an up to 60 days interest free card, I understand all that, I'm confused about re-payments.

Say I spend the following:

Month 1:
Week 1 R100
Week 2 R100
Week 3 R100
Week 4 R100

Balance owing after month 1 = R400, interest free till end of month 2, no payment into card yet.

Month 2:
Week 1 R100
Week 2 R100
Week 3 R100
Week 4 R100

Balance owing after month 2 = R800, R400 interest free till end of month 3 and R400 from month 1 charged for.

How much would I need to pay into the account in order not to be charged interest? R400 or R800? Basically is the card "smart" enough to know which payments to charge interest on after a certain amount of time whilst leaving the later "interest free' payments alone.

Or am I being thick here?

I have the discipline and record keeping skills to ensure I don't overspend etc etc

Its not 60 full days. Its basically when the bank issue the statement for the month. When the statement is issued, then the "free" days start till when the next statement due date is.

Mine is normally issued on the 5th, unless there is weekend/public holidays, the amount that is on that statement I need make sure that amount comes in the account, before the end of the month otherwise I will have to pay.

Say my statement is issued on 5th with amount of R20000 owed, the amount due is on 4th of the next month. I then go and do shopping and spent 30000, but I also paid 20000 into the account before the due date. This means I won't pay interest, because 20000 came into the account and my 30000 payment will only due next month.

It all revolves around when your statement gets issued. Your statement will tell you the amount you have to pay.

 

[ScottulusMaximus]

Say my statement is issued on 5th with amount of R20000 owed, the amount due is on 4th of the next month. I then go and do shopping and spent 30000, but I also paid 20000 into the account before the due date. This means I won't pay interest, because 20000 came into the account and my 30000 payment will only due next month.

That's exactly what I was asking, thanks

 

[Other Pineapple Smurf]

You won't earn enough interest to pay your credit card fees even if you managed to settle before interest is charged. I would need to keep R10K in an interest bearing account to just pay the monthly fees of my Nedbank credit card without any transactions (I've not swiped it after I settled it 9 months ago).

 

[Other Pineapple Smurf]

Only time you will score is if there is a loyalty program and bolted on benefits. I've got "free" AA membership on my petrol cards (with up to 5 recipients) and earn ebucks on my CC.

Works out R200 in AA as I've got a card in my name and my wife and then I earn R100-R150 in ebucks. Only reason why I have the FNB card.

 

[backstreetboy]

Yeah and not the minimum amount due. That's how you get burned or if you forget to pay one month like me.

You won't earn enough interest to pay your credit card fees even if you managed to settle before interest is charged. I would need to keep R10K in an interest bearing account to just pay the monthly fees of my Nedbank credit card without any transactions (I've not swiped it after I settled it 9 months ago).

Virgin CC is free/mahala.

 

[supersunbird]

You won't earn enough interest to pay your credit card fees even if you managed to settle before interest is charged. I would need to keep R10K in an interest bearing account to just pay the monthly fees of my Nedbank credit card without any transactions (I've not swiped it after I settled it 9 months ago).

You wont? My latest SMS from Capitec says I earned R42.89 interest for December, which is more than any of my CCs monthly fee, and I wasn't even trying.

 

[ScottulusMaximus]

You won't earn enough interest to pay your credit card fees even if you managed to settle before interest is charged. I would need to keep R10K in an interest bearing account to just pay the monthly fees of my Nedbank credit card without any transactions (I've not swiped it after I settled it 9 months ago).

I've done the sums, interest combined with no swipe fees and I easily cover the charges?

I'll also have the CC anyway, so may as well cover it's charges and pay 0 swipe fees, really isn't going to take much effort.