Credit Card Balances
Leave even $1 on your credit card, and you’ll pay interest on your entire balance.
Let’s say you charged $1,000 on your credit card last month and when you’re statement rolled in, you paid it all off, you wouldn’t be charged interest, right? Right. But let’s say you only paid off $900. How much would you be charged in interest then?
You probably think the interest rate would kick in on the $100 you left on the card. You’d be WRONG. When a partial payment is made on your credit card the interest waiver doesn’t apply and you’re charged interest on the full $1,000 from the date of purchase up until the $900 payment is credited. The remaining balance of $100 becomes the “retail revolving balance” which continues to accrue interest until paid off. And that retail revolving balance guarantees you’ll be charged interest on everything you buy moving forward.