How long does a credit card need to be paid off to stop getting hit with finance charges?

So here's the next question in my credit-card cleanup.


I have a card that I just paid off, and it has an excellent APR on purchases. Now, I'm sure I should just ask the credit company, but why not pick the brains of the Yahoo! Answerers out there and see what you think?


How long do I need to have the card at $0 balance to stop getting hit with finance charges? The card I have charges on the average daily balance, which can be quite high in a month I've had a lot of activity, even if I paid off the last statement in full. I don't think my card has a "no charges on new purchases" clause but I can find out. It is a Chase Amazon.com Visa, signed up for it several years ago when the AP was a fixed 8.9%


What I'd like to do, though, is get the card to $0 balance and just continue to pay off in full monthly, to avoid finance charge. Or, is it too late for that now?





Thanks!

How long does a credit card need to be paid off to stop getting hit with finance charges?
as long as there's a balance you will be charged. If you have paid it off in full, there should be no charges on your next statement. Depends on when payment was made. You might be hit with one more charge, but after that there shouldn't be any.
Reply:Once the card is paid off you should not accrue anymore interest, except that was still outstanding past the closing date. The real sucky thing about the vanity cards, i.e. Amazon, Barnes %26amp; Nobles, etc., is that they use a two cycle method to calculate your finance charges. So they look at two months, not just one.





Nevertheless, if you paid the card in full by the due date, there shouldn't be anything new on it. If there is, then you will have to break down and give them a call to ask them to explain. ;)
Reply:Most credit cards charge interest on a 'two-cycle' average daily balance. This means if you had a balance any time in the last 2 months, your 'average balance' is more than zero. If you start with a zero balance and pay in full each month, interest is usually not charged.
Reply:Once you have a bal on AC past due date there is FC on bal and new purchases as long as there is an APR, have to pay 2 mths in full consecutively for FC to stop. tried to be breif in my ans. hope it helps. didn't want to write a Book.
Reply:There is no daily finance charge if the balance is paid off monthly. Daily finance charges are only on old balances carried forward, not for new purchases unless they are carried into the following month.
Reply:If your card has a $0 balance at the beginning of the month, regardless of your purchase volume (see exceptions below), if you pay off in full by your due date, you should not see any finance charges.





Exceptions...if you go over your limit, or if you make a "purchase" of a cash advance (either at an ATM, or with a convenience check) you will see fees. Most banks charge a fixed fee if you go over your limit, and cash advances accrue interest immediately, there is no grace period.





If you are seeing finance charges that you do not understand, by all means, call the customer service number on your statement or back of your card.