Credit card charges finance charge for payment in full?
I have a Chase credit card. I paid my balance in full last month. Now this month, I get a statement saying I owe one dollar. I made no purchases between last month and this month and I paid the balance in full. Yet, they are saying I owe one dollar.
I called and the man told me that even if you start out with a zero balance, you then make a purchase of say 300 bucks, you get the statement, you pay it on time and in full (300 bucks), you will still get a statement the next month saying you owe the one dollar finance charge.
Have you ever heard of this?
This is crazy. If you pay the balance in full and on time, you should not have to pay any finance charge.
Tomk,
I see what you mean about the few days but that is why they call it a grace period.
I should also add that the man from Chase agreed to remove the dollar charge but he said it was a one-time thing. I just won't use this card anymore.
Clarification: he said that removing the dollar charge was a one-time thing and that they won't remove it again.
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With some credit card companies they have wait is called "residual" or "remaining" finance charges.
When you pay you balance in full each month by the due date the reason you don’t get charged finance charges is because they give you a grace period to get those transactions in.
However, as soon as you are late or don’t pay the balance off in full you start to accrue your finance charges daily…for each day you carry a balance.
It sounds like to me that you may have been carrying a balance prior, made a payment to clear out the balance and then got the finance charges yes? That is because if you were carrying a balance before that, you were accruing the finance charges daily. So, from the time your statement printed (which is when companies usually calculate the finance charges) till the date your payment was received in full, you were still accruing. They are not calculated in advance as companies do not know if you are in fact going to pay it off, when you are going to pay it, etc
That is just another way the credit card companies have to screw you.
There are always a few days between the close of the billing cycle and the time your payment reaches the company.
They charge you interest on your account for those two or three days. They did it to me too & there was nothing I could do about it.
They are nothing but plastic loan sharks.
Some credit cards have Minimum Finance Charges, but that is only if you owe for not paying it off. Speak to a supervisor. If you paid it off before the charges accrued…during your grace period, that is….you should owe nothing and I would contest that nickel-and-dime theory they are trying to pull.