Credit Card Payments Explained (Beginners Guide)
HTML-код
- Опубликовано: 20 авг 2024
- How do credit card payments work?
Need a new credit card? Visit creditcards.com and be responsible 😎: bit.ly/CashBack_HF
(click "show more" to see ad disclosure)
How do credit card payments work? Typically cards have 4 different payment options that I'll explain in this video. You've got the minimum payment option, statement balance, outstanding balance and "any amount". I'll briefly cover each payment type. Hopefully you'll understand a bit more the next time you make a payment on your credit card. And please remember to pay off your statement balance in full every month by the due date and you won't be charged any interest.
---------------
Robinhood Free Stock (Up to $200) with Sign Up:
► bit.ly/hf_robi...
Webull Up to 12 Free Fracional Shares (Each $3-$3,000):
► bit.ly/hf_webull
M1 Finance (perfect for IRA's):
► bit.ly/hf_M1_F...
Instagram:
► / honestfinance
Advertiser Disclosure: Honest Finance participates in affiliate sales networks and may receive compensation by clicking through the links (at no cost to you). This compensation may impact how and where links appear in this description. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This channel does not include all financial companies or all available financial offers.
---------------
Honest Finance covers a broad range of financial topics that'll give your life and finances more value. Subscribe today for future content and be sure to give this video a like!
Disclaimer: I am not a financial advisor. These videos are for education/entertainment purposes only. Investing of any kind involves risk, so please conduct your own research.
#honestfinance #creditcards
I hope you learned something new about your credit card payments.
Watch more credit card videos: ruclips.net/video/_HfXfKLYV68/видео.html
I watch your channel often. I make my kids watch it 😂😂 They get mad cuz it’s “boring” but they’re catching on. This isn’t taught in schools as it should be.
ya school dosnt teach real life skills usually they care about improving your memory with 3 and 6 week tests at lest that is what it is supposed to do.
Keep up the good parenting, thats awesome!
That’s great parenting. Schools are getting a little better, but relationships and money really need more emphasis
I'm lucky enough to have had a financial literacy class in high school. Its a mandatory class that all Juniors have to take.
I’m 19 and this is super helpful in my financial literacy journey!! Thanks so much man
You’re very welcome. Glad it helped
it can be boring but man, so is school! education is key to success 💯
Very true
I feel like it’s exciting haha it’s only gonna dictate a drastic amount of how soon you can get ahead in life
I'm a new credit card user and this was extremely useful for me! Thank you so much.
You’re welcome!
FINALLY, a video that explains as simple as possible, thanks mate, you have no idea how long I’ve tried to find a video like this
I’m glad it helped. Thanks for the comment
Finances are never boring to me
Thanks for clarifying. People like you that make these videos are unsung heroes. I appreciate you 💜
Thanks! Glad it helped
Appreciate how easy it is to take notes. Just got a credit card and writing down notes as reference will always be a life saver in the future. Heck, I'll keep these notes when my little brother gets his credit card in a couple of years.
Pro Tip: Set a reminder on your calendar to remind you to make your monthly payments. Better yet, if your bank allows, set up automatic payments.
If u make monthly payments how does the bank know the balance each month
i’ve had credit for 5 years and i’m really strugglin to pay it off. i wanna cancel it but apparently it doesn’t work like that. trying to learn now to get out of debt. this is an awesome video!
Glad it’s helping
Not boring when your an adult
For some of us :)
Great video i had a doubt but now i am ok after watch this video.
Nice, informative and quick explanation. Thank you.
Glad you liked it
Thank you so much for explaining. I’m new user and this video will help how to used my new card. Please do more education videos in future you are great tutor god bless.
Hey thank you very much and I’m glad the video helped
Thanks for this video. I shared it with a friend because they didn’t understand I try to explain as best, but I came across this one. Thanks much.
Thank you man, easy and to the point 🌹
Thank you
Someone explain this to me.
My November CC statement balance is 20 bucks. I take out a no interest loan 4 days before paying the statement balance in full.
November Statement is paid and next month I expect to pay minimum payments with no interest.
December, I pay the minimum Payment with no interest. Unknown to me, my credit card had a "interest saver" payment option that was 20 dollars more than my minimum. I assume this is the 20 dollars I already paid. January my statement has my minimum payment but is accruing interest from that 20 dollars I paid back in November. How is this possible? There's no transactions since taking out the loan.
By the way I just realized it this month. I plan on paying the interest saver payment and letting it go. I got a Cashback deal I forgot about that more than paid the dollar I lost in interest.
It’s a nice video short and sweet ❤️
My first credit card is 23k with 18k interest
so my minimum payments are due the 5th of each month. I try to pay the entirety of the current balance by the 5th, so that by the end of the billing cycle on the 6th, I have it at zero. What are your thoughts? 😊
I’m new to using credits card (18 years old here) my question is whenever I get my bill I pay it on time like usually the 12-14th of each month since I get the bill every 10th of the month. However on my bill it always says minimum payment $10 so I pay that along with the other payment and I didn’t know that minimum payment is not necessary if I’m already paying the full amount now I don’t know what to do since I’ve been paying the minimum amount the whole time when I didn’t have to? Any suggestions what I can do now? Thanks
So do you think if I will put my credit card on automatic payments on the 15th of every month and the payment amount is always last statement balance in full. I will be fine right? I don't have to worry about the interest or late payment then?
You won’t have to worry about anything if you do it that way as long as the payment is pulled before the due date
I’m a fucking idiot. Thank you my man. Cleared a bunch of shit up for my smooth reptilian brain
Dude. Thanks 🙏🏻
You’re welcome. Glad it helped
I just started on rebuild journey capital one threw me a bone. Paid 99 to get a 200 credit line only charged gas which last statement was 14 dollars, but I paid it and it reported 7 dollars. But I paid it zero which let me here I don't know how credit cards work all that well 💩
Hello, I have a question about my credit card. I got a credit card with a $300 limit and the minimum I owe is $17.91.
It says: “Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. The table is based on your standard minimum payment and does not include any past due and over limit amounts. For example:
If you make no additional charges using this card and each month you pay ... only the minimum payment
You will pay off the balance shown on this statement in about... 1 months
And you will end up paying an estimated total of ... $18.00”
Do I pay $17.91, $18.00, or more than that to avoid interest? And is it best to pay by the statement date or the due date? Or do I split it into paying half by the statement date and the other half by the due date? Also, would it be best to use my credit card every month?
I paid my balance in Full on 1st of july hoping to See credit score increase on 25th!! 🙃🙃🙂
I just got a credit card does paying the outstanding balance lower the amount you pay for your statement?
Which option is best to increase credit score
Pay off the statement balance in full to help your credit score
The monthly payment is that the interest u owe on ur total outstanding?
Thankyou Kurt Warner
Hi in order to pay it off do u pay or transfer the amount over to credit card
Hello. FYI before I ask you. I just received my credit card on the 10th or 17th of January 2023. I started using it last Feb 3 till Feb 15. I already have a current balance but I do not have a statement balance and statement date but I have a payment due date. When will I receive my statement balance and statement date. Thank you. Have a great day.
Next month should have an official statement. Maybe you didn’t because the card didn’t have enough history
Is it bad that I've been paying only my outstanding balance monthly.
But what I actually have to be paying is my last statement balance?
Outstanding is perfect because you’ll pay off the statement and more each month
So basically, if i pay my outstanding balance, i will be paying all the amount that i owed right? Including statement balance?
Yes
I have a question 😊
What’s up?
Hey I have had my credit for about 2 I been paying my card before statement due date in full so my utilization has been 0 is that like I’ve never used the card
No, that’s a good thing. Keep it up
Hi, do i get fined interest if i only pay the minimum balance before the due date
Minimum or not paying the statement in full
I've herd you should pay 95 percent by the statement date then the other 5 by the min day so that the credit utilization is reported. Thoughts?
Ya. Try to pay it down as far as you can before the cycle closes. That way the lowest amount will be reported
@@HonestFinance I thought paying it down to 0 was the best
@@HonestFinance my billing cycle is from the 3rd to 3rd of each month, my statement due date balance is on the 28th, If I pay my current balance the 28th of every month and don't use my credit card between the 28th and the 3rd of the next month then my statement balance is always 0 and that's what's being reported. I've been doing this accidentally since I got my credit card. Will doing that not help me build credit?
That’s amazing that you’ve kept it at $0. It will help your credit score . Honestly though, it’s okay to add a little at the end of the month. You don’t need to stop using your card every month. I usually have $100-$200 reported .
Here’s a video that explains exactly what you’re talking about ruclips.net/video/VWDoLyS_1DM/видео.html
Hey, I am fairly new to credit cards I’m 18 years old. I go to pay the balance on my credit card but notice I have a $200 bill for statement to pay as well. Usually my statements is $0 should I pay it minimum or just pay everything in full and avoid the same mistake.
Pay off your statement in full by the due date, or you’ll start accumulating interest. Don’t pay the minimum unless you have no other choice
Hi I have a question. If my I’ve already paid off my statement balance which is ending in 7 days. If I make a new purchase will that be on statement balance ending 7 days or the next statement balance?
How do I pay my credit card bill? Do I send it through the mail?
You can pay it over the phone, internet or through mail
@@HonestFinance thanks!
If my due is 28 and cycle starts on 2nd can use my cc before the cycle start or I should wait for it to start? Thanks
You don’t need to wait because it’ll just carry over to the next cycle
Hi, I got my first credit card the other day, it’s $3,500 through Capital One, it said I have 0% APR for the first 11 months. What is the best way to take advantage of that? Or is it just a gimmick type of marketing thing? Would I benefit from spending the majority of my limit throughout this 0% APR period, or does it not make much difference? For example, I am planning on having some dental work done, would it be smart to use the credit card for that when I was planning on paying cash? Or should I just spend like a 100 bucks a month and use it to build my credit? I’m not a child, I don’t plan on going into debt, just looking to take most advantage of the card. Paying back 3 and a half grand is not a big deal to me, I could spend it all and pay it off the next billing cycle, I just want to do whatever’s the most advantageous. Thanks!
If you plan on paying the money back by the time the promo ends, then that’s fine. Otherwise don’t bother
So the minimum payment is actually 89-90% interest ?
More like 99% interest :)
Let’s say I have a total balance of $900 and and statements balance is $200 and minimum amount payment is $40 so what do you recommend to do pay the full $900 but 10% or what ? I also want to build my credit
Pay off the statement each month, then you’ll pay $0 interest and build credit history
That’s all I’d worry about for now
@@HonestFinance you meant I pay $200 now and next month if I have another $200 or $300 I pay it again right !!
3:21
Thanks for creating short and simple guidance video. I have a doubt.. Let me tell you what I do in my case; Suppose I made a purchase of $120 and later 3 days that transaction of $120 started showing in posted transaction. Every time I pay posted transaction amount immediately, so when statement get generated then it always show 0 statement balance. I am doing this since 6 months and I have noticed that my credit score going down. Earlier it was increasing at good pace.
Could you please tell me if this method of doing instant payment is wrong ? Is this becoming reason of decreasing my score ? I know score also decrease when any institution made inquiry on it. I always spent under 30% of credit limit FYI, but score is not improving.
In short, I am paying every cent of used credit "before credit card statement got generated, hence New Balance is always 0 in every statement and there is no amount I pay till due date".
Start using 10% instead of 30%.
I have a question?🙋🏻♂️
And what’s that?
So during the Grace period, let’s just say I owe $100 after the cycle date. And I use the card, during the Grace period. As long as I make $100 payment, I’m ok even when the due date comes in and my balance increased?
As long as you pay the statement balance in full by the due date, you’re fine
Question. On the video you said “once you pay off your balance and after a few months* it’s a rule of the c/c company, they shouldn’t charge interest”?
Why I ask is I just paid off my card, the statement close date was the 22nd and I paid the balance in full on the 22nd, when I got my statement it did show I was charged Interest. The rep told me that is the interest from carrying a balance the month before?
I don’t think that is true since you just said after paying the balance after your statement period in full that shouldn’t charge any interest? To confirm you’re paying for the statement date period for example mine lands on the 22nd so this last statement was Aug 23- Sep 22 the interest should be charged for those dates carrying a balance but since I paid it in full on the 22nd do you think 🤔 should’ve been charged the interest. I did carry a balance my last statement by the way, this is my first time paying it completely off.
Sorry for the long comment hopefully this makes sense. Ty!
It’s confusing, but credit cards are always a month behind when you receive your statement (because they need to account for the previous statement activity). So if you pay off your statement balance in full by the due date for two months in a row, then interest shouldn’t accrue. Try it and see what happens
Imagine if they taught this shit in school
I totally agree
They won’t because they want the masses to be illiterate so they can take advantage of them. We’re only a few.
Ok
as a Iranian this is useless LOL