When does interest start to apply?
Q. As someone who has never had a credit card, I have a question about how they work. If I use a card to purchase something (e.g., hotel room or groceries) and pay my credit card bill as soon as I receive it, will I be charged interest on my purchase? A. If you pay every the "new balance" on every bill soon enough so that they receive your payment within approximately 20 days after they sent the bill, then you will not be charged interest. If you do not do this on even one bill, then you will be charged interest on at least two bills. (The interest starts on the date of the purchase if either that bill or the previous bill was not paid in full.) If you pay only the "minimum payment" on any bill, then you will be charged interest. If you wait until you "receive" the bill, then you may be charged interest. Sometimes, the post office is slow to deliver the bills, and you have to pay the bill before you receive it. (You can look at the bill online.) Is i...