Credit card closing balance

Discussion in 'Loans & Mortgage Brokers' started by mikey7, 7th Jan, 2019.

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  1. mikey7

    mikey7 Well-Known Member

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    Hi all,

    Bit of a 'stupid' question, but thought I'd ask and confirm, as there is always someone else out there with the same question.

    I have a credit card.
    Every month, it tells me the minimum repayment and closing balance that is due on a certain date each month.

    Current example:
    Due date: 14 January
    Minimum repayment: $50.00
    Closing Balance: $512.00
    Current balance: -$1500.00

    Now, every time the due date comes around, I just pay the entire amount off. In this case, it will likely be a little higher than the $1500 as there is still a week to go.

    However, my understanding is that I only have to pay the 'closing balance' each month to avoid fees and interest, and I don't actually have to bring the card to $0.00 on that date.

    Is my understanding correct? If so, is there any benefit to paying it off completely each month as opposed to just the closing balance?

    Thanks,
    Mike
     
  2. Brady

    Brady Well-Known Member

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    Adelaide, SA
    No benefit in zeroing off the card, just pay the closing balance.
    Even easier just setup autopay for the closing balance.
     
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  3. Marg4000

    Marg4000 Well-Known Member

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    Just pay the closing balance each month to avoid interest charges. Pay more if you want to, but it is not necessary.

    We have our accounts set up to pay the closing balance automatically each month.
    Marg
     
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  4. mikey7

    mikey7 Well-Known Member

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    Excellent thanks guys.
    Can't seem to figure out how to do that with Macquarie. Westpac was very clear and easy.
     
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  5. jprops

    jprops Well-Known Member

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    Closing balance :) This is how the "Up to 55 days interest free" works. Essentially the previous months transactions are due around the 15th of each month.
     
  6. Brady

    Brady Well-Known Member

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    It's 28 day cycle (thanks Feb!)
     
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