Grace Periods on Credit Cards
Grace Periods on Credit Cards
Author: Guest
Posted: Tue Jul 06, 2004 6:56 pm
Last year Bank One Visa cut my grace period from 25 days to 20 days. This means from the time I receive a statement until I need to write a check and mail it, I have maybe 7 days. So, I cut my use of BankOne Visa from $15,000.00 per year to $0.00 per year. MBNA and DISCOVER, both with 25+ days grace period get my business now.
Similarly, I cancelled my AMEX gold card after 24+ years with AMEX. The statement showed only 15 days grace, although a call to AMEX indicated per the cardmember agreement I had 30 days. But I go by the statement, not some long lost cardmember agreement.
I travel a lot for business and pleasure; if the card only has approximately 7 days for me to pay it is unusable as a travel product.
My Point: I never carry any balance on any card; a low interest rate is appealing, a 30+ day grace period is what I really need.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Grace Periods on Credit Cards
Author: Verne
Posted: Tue Jul 06, 2004 7:23 pm
One possible solution is to set up automatic bill paying either with your bank or the credit card. All of my credit card bills are paid automatically about 5 days after the statement date and well before the due date.
I like to use my bank's epay service since the credit cards get a little gimmicky - the default payment is usually the minimum 2 days before the due date. (the agreement says you will still be responsible for any late payments if this somehow fails)
With my bank's bill paying service I set up a recurring payment that more than covers the minimum with a date of my choosing. I could be in a coma for several months (how would anyone tell?) and all the bills would be paid.
Verne
Grace Periods on Credit Cards
Author: Polonius
Posted: Tue Jul 06, 2004 11:36 pm
You don't have to wait for your statements to arrive. Find out the amounts on line and pay them online too, as Verne says. I do online banking with Citibank and Wells Fargo--both pay all major charge cards electronically, so if a card has a due date of Wednesday at 1 PM I just schedule payment on Monday--the payment posts to my account some time on Tuesday and I'm safe.
Also, I think that the Gold Amex card just has a "suggested" payment due date; if your payment arrives before the next statement closing date, you're OK regardless of the due date stated on the statement you receive. That's NOT true of the other Amex cards, like Optima or the Cash Rebate cards. The Gold card similarly has no firm upper limit either.
But I hear what you're saying. What bugs me are the statements I get showing the statement closing date a week before the postmark on the envelope containing the statement! Looks like banks will do anything to trap you these days.
Last edited by Polonius on Wed Jul 07, 2004 10:34 am; edited 1 time in total
Grace Periods on Credit Cards
Author: Guest
Posted: Wed Jul 07, 2004 10:18 am
Most large issuers are cutting those grace periods down. MBNA is the last holdout of prime issuers to give you 25-days. The rest narrowed it down to 20-days (Citi,amex,bofa,bankone).
Interestingly, Cap1, Providian, Direct Merchants Bank, and Aspire are 25-day grace periods
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Grace Periods on Credit Cards
Author: Charley
Posted: Sun Jul 11, 2004 10:58 pm
I know your problem with grace periods. Long grace periods are a major selection criteria for a credit card for me now.
Many many years ago, I had an original AT&T card. They had great customer service and were easy with their payment due policy. I could mail my check on the due date and not get hit with a late fee. Then they got sold. To Citi Bank I think. I had a two week vacation in Hawaii and knew I had a card payment due the day after I came back. But AT&T was always kind so I knew I could mail my check the day I got back and all would be fine. A month later I discoverd life under Citi Bank was not the same as it was under AT&T. I cancelled the card that I had since it was first introduced.
Almost all my cards have 25 day grace periods now. MBNA and Discover are 25 days and Wells Fargo is almost 25. Amex Blue is the only short timer but I keep it around for special situations and I transferred some reward points from my since cancelled Green Card. And I think Polonius is right about the original Amex charge cards. The dates when they actually start charging you a late fee are pretty late. I recall somthing like two full statement periods. You pay an annual fee but they are flexible with you.
With credit card companies using penalty fees as their growth engines, I may be doing what Verne suggested, at least when I'm travelling: Setting automatic payments from my bank account to pay the minimum. That should keep the card companies happy and the late fees off my statements.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Guest
Posted: Tue Jul 06, 2004 6:56 pm
Last year Bank One Visa cut my grace period from 25 days to 20 days. This means from the time I receive a statement until I need to write a check and mail it, I have maybe 7 days. So, I cut my use of BankOne Visa from $15,000.00 per year to $0.00 per year. MBNA and DISCOVER, both with 25+ days grace period get my business now.
Similarly, I cancelled my AMEX gold card after 24+ years with AMEX. The statement showed only 15 days grace, although a call to AMEX indicated per the cardmember agreement I had 30 days. But I go by the statement, not some long lost cardmember agreement.
I travel a lot for business and pleasure; if the card only has approximately 7 days for me to pay it is unusable as a travel product.
My Point: I never carry any balance on any card; a low interest rate is appealing, a 30+ day grace period is what I really need.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Grace Periods on Credit Cards
Author: Verne
Posted: Tue Jul 06, 2004 7:23 pm
One possible solution is to set up automatic bill paying either with your bank or the credit card. All of my credit card bills are paid automatically about 5 days after the statement date and well before the due date.
I like to use my bank's epay service since the credit cards get a little gimmicky - the default payment is usually the minimum 2 days before the due date. (the agreement says you will still be responsible for any late payments if this somehow fails)
With my bank's bill paying service I set up a recurring payment that more than covers the minimum with a date of my choosing. I could be in a coma for several months (how would anyone tell?) and all the bills would be paid.
Verne
Grace Periods on Credit Cards
Author: Polonius
Posted: Tue Jul 06, 2004 11:36 pm
You don't have to wait for your statements to arrive. Find out the amounts on line and pay them online too, as Verne says. I do online banking with Citibank and Wells Fargo--both pay all major charge cards electronically, so if a card has a due date of Wednesday at 1 PM I just schedule payment on Monday--the payment posts to my account some time on Tuesday and I'm safe.
Also, I think that the Gold Amex card just has a "suggested" payment due date; if your payment arrives before the next statement closing date, you're OK regardless of the due date stated on the statement you receive. That's NOT true of the other Amex cards, like Optima or the Cash Rebate cards. The Gold card similarly has no firm upper limit either.
But I hear what you're saying. What bugs me are the statements I get showing the statement closing date a week before the postmark on the envelope containing the statement! Looks like banks will do anything to trap you these days.
Last edited by Polonius on Wed Jul 07, 2004 10:34 am; edited 1 time in total
Grace Periods on Credit Cards
Author: Guest
Posted: Wed Jul 07, 2004 10:18 am
Most large issuers are cutting those grace periods down. MBNA is the last holdout of prime issuers to give you 25-days. The rest narrowed it down to 20-days (Citi,amex,bofa,bankone).
Interestingly, Cap1, Providian, Direct Merchants Bank, and Aspire are 25-day grace periods
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Grace Periods on Credit Cards
Author: Charley
Posted: Sun Jul 11, 2004 10:58 pm
I know your problem with grace periods. Long grace periods are a major selection criteria for a credit card for me now.
Many many years ago, I had an original AT&T card. They had great customer service and were easy with their payment due policy. I could mail my check on the due date and not get hit with a late fee. Then they got sold. To Citi Bank I think. I had a two week vacation in Hawaii and knew I had a card payment due the day after I came back. But AT&T was always kind so I knew I could mail my check the day I got back and all would be fine. A month later I discoverd life under Citi Bank was not the same as it was under AT&T. I cancelled the card that I had since it was first introduced.
Almost all my cards have 25 day grace periods now. MBNA and Discover are 25 days and Wells Fargo is almost 25. Amex Blue is the only short timer but I keep it around for special situations and I transferred some reward points from my since cancelled Green Card. And I think Polonius is right about the original Amex charge cards. The dates when they actually start charging you a late fee are pretty late. I recall somthing like two full statement periods. You pay an annual fee but they are flexible with you.
With credit card companies using penalty fees as their growth engines, I may be doing what Verne suggested, at least when I'm travelling: Setting automatic payments from my bank account to pay the minimum. That should keep the card companies happy and the late fees off my statements.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
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