Quote:
Originally Posted by John Tanglewood
Okay, so this may be the dumbest question of the day but here goes.
The card has an APR. Are you saying if I make a purchase (say for $600), then the next morning I log into my chase account and pay that $600 directly from my checking account with some bank, I won't be charged the APR?
The APR is only charged at the end of the month if you're holding a balance? Is that correct?
If so I've been unaware of this for way too long. And yes I realize my AMEX is a charge card, but I guess I am not well-versed in how to avoid APRs. I am fine with paying for things as I go, I don't carry balances on any of my credit cards.
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A credit card has a billing cycle. After the billing cycle, you generally have 30 days to pay balance in full. If you don't pay in full, the balance is subject to the insane interest (usually around 20%).
If you ever get a credit card and can't pay balance in full, you are screwed, particularly if you don't have money to knock it out. Once they get you, it's hard to get out.