Hello There, Just a quick question I notice that both the Sears Gold MC and Statefarm Bank visa has this... if you pay more than the mininum payment they require you to pay then they will apply the over payment to the up to 3 months... which means no payment for 3 months so all they are requiring is only $10 a month and if you pay it when it saids $0 due for the month they will again apply it to the next few months... so my question is is this a good or bad thing... I guess the way I think of it is that if you are kind of tight it will bail you out for a few months... please help me out on this one... I notice that all the other cards I got they just reduce the balance if you pay more than the minimum..... Thx, Kev
Re: Question About Pay Ahead Min Pm It's a trick--I mean technique--to keep your balance as high as possible for as long as possible so that they can extract more interest from you.
Re: Question About Pay Ahead Min Pm Hello BC, Thank You for your response.... that's what I thought it is... so I guess i won't rack up the balance on either of the cards..... Thx, Kev
Re: Question About Pay Ahead Min Pm If you have a "PAY AHEAD" card...ALWAYS pay the interest accrued if you can... We have a few "PAY AHEAD" cards...BUT I just pay more than the minimum anyway...
Re: Question About Pay Ahead Min Pm Hello George, Thanks for the info... yeah I am paying at least 3x the minimum right now.... that will cover the interest on it... I don't have a big balance on either of the cards.... I guess once I pay it down I will just let them sit.... the apr is not the greatest sears gold mc 2.9% right now but after 6 mos it will go to 17.9% and statefarm visa 11.65% no into rate for me.... I have quite a few of the 9.9% right now.... Thx, Kev
Re: Question About Pay Ahead Min Pm You can look at this as a credit tactic to gain extra money from you as a consumer or you can view it as a way to avoid future problems. I know of instances where there are credit card customers that are on a fixed income and they have a hard time making their payments by the due date to avoid costly late fees of anywhere from 25-29.00. Granted, some cc's can change their due date for customers but some cannot due to the way their accounts are set up when applied for. The paid ahead feature allows the consumer to pay double what thier minimum payment is. Let's say you figure it in at 1/45th or 1/48th of the balance. If a customers due date is on the 3rd of the month but they only get thier SS check on the 1st then they are unlikely to be able to get that payment to the cc's payment center in time. If they were in a paid ahead status as long as they continue to make a payment during each billing cycle they would continue to be paid ahead and would never have to worry about late fees and the derogs on their bureau. Since there was no payment required no penalty. Of course, interest still accrues so you want to ensure you are making a payment each month and that you do not miss a payment to not only keep in the paid ahead status but to continue working down your account balance.
Re: Question About Pay Ahead Min Pm Hello Freeze, Thank You for the extremely helpful info... I will be sure to continue making payments monthly... Thx, Kev
Re: Question About Pay Ahead Min Pm You're welcome. After all, why not avoid the late fees at all cost.
