What is Residual Credit Card Interest?
Author: somercamb
Posted: Wed Oct 19, 2005 9:48 am
Post subject: residual interest?
The most recent Consumer Reports has some great articles on Credit Cards. One thing they briefly touched on was "residual interest" which i had never heard of. Here is how they explained it (without any elaboration):
" Another twist, called residual interest, recently adopted by American Express, works like this: You get a bill with a $1,000 balance on Nov. 1 and mail in your check so that it arrives by the due date, say, 25 days later. On Nov. 2, however, you charge $500. Before Amex’s change, you paid no finance charge on the $500. Now Amex charges interest on the purchase until it receives your $1,000. "
Am I reading this correclty? If you have a (specific?) AMEX card you will be charged interest on new purchases until they receive your current ON TIME payment? So, is one supposed to stop using their card until they know AMEX has cashed their check or debited the $$ from the customer's checking account?
It's difficult to interpret without more info, but I wonder if this is applicable to those who pay IN FULL and ON TIME. From what it states it seems to include all folks.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Board Monitor
Posted: Thu Oct 20, 2005 7:58 am
Post subject:
Greetings and welcome to the board! Doesn't apply to folks who PIF as far as I know. We did a new article on this topic a few months back:
http://www.cardratings.com/creditcardnews
Out of curiosity, how did you find out about our website?
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: somercamb
Posted: Thu Oct 20, 2005 8:21 am
Post subject: residual interest article?
Not sure from where I found your site (maybe via bankrate.com?). I have had it and related sites bookmarked for quite some time, but never used the board before now. I went to the news link but found nothing on
"residual interest"....
Author: Ira
Posted: Fri Oct 21, 2005 12:26 am
Post subject:
It's another term for 2-cycle billing.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Wed Oct 19, 2005 9:48 am
Post subject: residual interest?
The most recent Consumer Reports has some great articles on Credit Cards. One thing they briefly touched on was "residual interest" which i had never heard of. Here is how they explained it (without any elaboration):
" Another twist, called residual interest, recently adopted by American Express, works like this: You get a bill with a $1,000 balance on Nov. 1 and mail in your check so that it arrives by the due date, say, 25 days later. On Nov. 2, however, you charge $500. Before Amex’s change, you paid no finance charge on the $500. Now Amex charges interest on the purchase until it receives your $1,000. "
Am I reading this correclty? If you have a (specific?) AMEX card you will be charged interest on new purchases until they receive your current ON TIME payment? So, is one supposed to stop using their card until they know AMEX has cashed their check or debited the $$ from the customer's checking account?
It's difficult to interpret without more info, but I wonder if this is applicable to those who pay IN FULL and ON TIME. From what it states it seems to include all folks.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Board Monitor
Posted: Thu Oct 20, 2005 7:58 am
Post subject:
Greetings and welcome to the board! Doesn't apply to folks who PIF as far as I know. We did a new article on this topic a few months back:
http://www.cardratings.com/creditcardnews
Out of curiosity, how did you find out about our website?
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: somercamb
Posted: Thu Oct 20, 2005 8:21 am
Post subject: residual interest article?
Not sure from where I found your site (maybe via bankrate.com?). I have had it and related sites bookmarked for quite some time, but never used the board before now. I went to the news link but found nothing on
"residual interest"....
Author: Ira
Posted: Fri Oct 21, 2005 12:26 am
Post subject:
It's another term for 2-cycle billing.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 7:18 PM
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