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 Credit Card v16, Ask general questions here, Please read the 1st post before posting!

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Garruk
post Nov 13 2011, 08:53 PM

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wanna ask a newbie question here,

i have heard ppl saying that if you pay your credit card balance each month in full you will NOT be charged any interest at all is that true?

for example if i have maybank 2 card with interest rate 8.88% pa or 0.74% pm
say i have got a new card in November and i swiped RM100 that month

when the bill for November comes what is the amount i am going to pay if i wanna pay in full
a) RM100.00 (no interest)
b) RM100.74 (with 0.74% pm interest)
Garruk
post Nov 13 2011, 09:27 PM

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QUOTE(Gen-X @ Nov 13 2011, 09:04 PM)
You will not be charged a  sen of interest if you pay the Statement Outstanding Amount prior to the Due Date.

E.g.

Statement Date is on 10th of every month.
Payment Due Date will be on 30th of every month (usually 20 days from Statement Date)

You did a RM100 transaction on 7th of November (before the Statment Date).
And you did another RM200 Transaction on 11th of November (after the Statement Date).

So your November Monthly Statement will show Outstanding Balance of RM100 only. You only need to pay RM100 before the Due Date 30th November to avoid interest being imposed. The RM200 will only show up in the folowing month's Statement and you need to pay in full before 30th December.

One thing I must add, if you are new to credit card, my advise is you do not sign up for online statements until after few months of getting paper statement so you are familiar with terms like Statement Date, Statement Balance, and Due Date.

You may be also be interested in my article Credit Cards Are Cash Cow for Banks - click here to read it. In this artilcle I have examples on how interest are being charged.
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Thx gen-x for the explanation.its very helpful i have been reading your article regarding credit cards since some times ago since i decided i wanna get a card.might have missed out on the interest calculation entry though.

may i know if we will be charged if we opt for paper statement each month?
can we have both paper statement and online statement together?

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