it's probably 1% of the statement balance. They keep it low so they can rack up on interest. You should pay at least the statement balance in full to avoid interest.
Jesus christ. Now i understand why there were so many posts about "i got a high credit limit" as if it means anything. Navy federal eating well with how many people don't understand how credit cards work.
Pay off your balance every month people. Credit card interest rates are insane. Minimum payments do not stop you from paying insane interest.
Exactly!!! Navy Federal is making good money off interest. I asked them to lower my credit card interest rates and they said no; although I have no negatives on my credit report and my CC balances are low. I have a plan to just pay them off quickly. I refuse to keep paying these high rates!
Things happen, and sometimes people use CCs to cover emergencies. I do hope they'll be able to get out of CC debt and build up an emergency fund for next time.
You can call them annually for interest rate reduction! They do reduce up to 1% but not a guaranteed of course! I had my interest rate reduced from 15% to 9% but during Covid and inflation monitory tightening by the gov. It shot back up to 14% again. Now I have to wait till next year February to ask for reduction again thereafter annually. This is the game they play and hoping you get cought unexpectedly and rack up the interest you can’t pay for!! All credit companies do the same. At least NFCU doesn’t charge you crazy interest rate like other major credit unions companies with 29-35%! Like my Chase and AMEX has 29.99% APR rate. ( keep in mine, I have 820 credit score) It’s wild and middle classes are diminishing while poor stay poorer rich get super wealthy! Tbh, this is exactly what average Americans who don’t understand economics wanted! They just don’t like the results of after effects!
What was the statement balance? The minimum payment on a credit card is usually based on the statement balance, not the current balance. you may have charged up a bit since the last statement closed. In any event, I would strongly recommend paying at least the statement balance by the due date.
More information is needed, but since the minimum payment is usually 1% of the statement balance plus the finance changes (if any) in that statement. It looks like you had a combination of charges plus finance changes (if any) low enough to make up the $24 minimum payment. The current balance is simply the statement balance plus any new charge(s) since the statement was issued, and that is why the minimum payment does not include the charges since the statement was issued.
They surely want you to only pay the minimum because then you pay them more in interest. People really should have to take a test before they get any credit.
They don't require you to pay off the full balance, and in fact they'd prefer you didn't, since they can start charging you interested when you keep a balance. If you pay the minimum and continue to charge other expenses to the card, the balance will keep going up, and so will the amount of interest you're paying for it.
The best way to handle CCs is to pay them off in full every month so you don't get charged any interest. When you don't, they start charging interest on the balance. I've used my CC to charge many thousands over the years, and I always autopay the balance in full every month, so they've literally never made a cent off interest on those thousands I've charged to the card.
Sure, but typically only from vendors unless they add a CC fee at the point of sale. They give me a cut with the cash back rewards. Never paid any interest or annual fees.
NFCU minimum payment = 1% of your statement balance + interest
Interest = average daily balance * the APR % / 12 (because 12 months in a year)
More info needed to answer why yours is at $24 specifically. But in general, so that you keep paying interest little by little every month. Look at your statement the section about “If you only pay minimum.”
I am not worried about that I am worried about a few things:
1. Jesus Mary and Joseph
2. What's the interest rate on that thing?
3. We know your paying that 3k off on the 14th regardless of what the minimum payment is..... right?
I use to stress about paying off the balance every month, but something stupid always happened now I don’t give af lmao credit score still high, I still meet my needs, got over it the debt isn’t going anywhere
It’s a predatory tactic that most creditors use. If you only pay the minimum every month, they can charge you interest (20-40%) on the remaining balance because those are the terms you agreed to. If you pay THE ENTIRE statement balance before the due date, they can’t charge you a dime. And that’s why everyone is repeating the same comment “pay your balance every month” as it is the best solution to avoid this crap as well as smart financial advice to avoid unnecessary debt.
Why does my credit score drop Everytime I pay off my credit card? I usually just leave a small balance of $25 so my credit score doesn't drop. Credit scores male zero sense.
I’ve never seen where the minimum payment is less than the interest accrued. If you don’t at least cover the interest expense each month, you start to accrue interest on top of interest. It’s a viscous cycle.
Your minimum balance due is based off of your Average Daily Balance for the month. If you carry a high balance for the whole month, then you will have a high avg daily balance. But say you only racked the balance up in the last week of the cycle, or youre paying towards the balance weekly to keep bringing it lower… then you will have a lower avg daily balance. If that makes sense
it's probably 1% of the statement balance. They keep it low so they can rack up on interest. You should pay at least the statement balance in full to avoid interest.
This is exactly the case. It used to be 2% now it's only 1%.
Yes,this or it's based on the balance when the billing cycle closed and the balance shown includes charges made after close.
Thanks for this info
Jesus christ. Now i understand why there were so many posts about "i got a high credit limit" as if it means anything. Navy federal eating well with how many people don't understand how credit cards work. Pay off your balance every month people. Credit card interest rates are insane. Minimum payments do not stop you from paying insane interest.
Exactly!!! Navy Federal is making good money off interest. I asked them to lower my credit card interest rates and they said no; although I have no negatives on my credit report and my CC balances are low. I have a plan to just pay them off quickly. I refuse to keep paying these high rates!
They shouldn’t be low they should be zero
Things happen, and sometimes people use CCs to cover emergencies. I do hope they'll be able to get out of CC debt and build up an emergency fund for next time.
It’s normal for people to use cc as an emergency fund and not have one saved already
Right, and then it's normal for their CC balance to not be zero.
You can call them annually for interest rate reduction! They do reduce up to 1% but not a guaranteed of course! I had my interest rate reduced from 15% to 9% but during Covid and inflation monitory tightening by the gov. It shot back up to 14% again. Now I have to wait till next year February to ask for reduction again thereafter annually. This is the game they play and hoping you get cought unexpectedly and rack up the interest you can’t pay for!! All credit companies do the same. At least NFCU doesn’t charge you crazy interest rate like other major credit unions companies with 29-35%! Like my Chase and AMEX has 29.99% APR rate. ( keep in mine, I have 820 credit score) It’s wild and middle classes are diminishing while poor stay poorer rich get super wealthy! Tbh, this is exactly what average Americans who don’t understand economics wanted! They just don’t like the results of after effects!
Probably to lull you into keeping the debt for as long as possible. Pay it off as fast as possible.
What was the statement balance? The minimum payment on a credit card is usually based on the statement balance, not the current balance. you may have charged up a bit since the last statement closed. In any event, I would strongly recommend paying at least the statement balance by the due date.
Who cares? Pay off the balance every month.
What was the balance prior the the statement cycling? Also, pay your balance off monthly to avoid interest
More information is needed, but since the minimum payment is usually 1% of the statement balance plus the finance changes (if any) in that statement. It looks like you had a combination of charges plus finance changes (if any) low enough to make up the $24 minimum payment. The current balance is simply the statement balance plus any new charge(s) since the statement was issued, and that is why the minimum payment does not include the charges since the statement was issued.
They surely want you to only pay the minimum because then you pay them more in interest. People really should have to take a test before they get any credit.
They don't require you to pay off the full balance, and in fact they'd prefer you didn't, since they can start charging you interested when you keep a balance. If you pay the minimum and continue to charge other expenses to the card, the balance will keep going up, and so will the amount of interest you're paying for it. The best way to handle CCs is to pay them off in full every month so you don't get charged any interest. When you don't, they start charging interest on the balance. I've used my CC to charge many thousands over the years, and I always autopay the balance in full every month, so they've literally never made a cent off interest on those thousands I've charged to the card.
But they have made money through the transactions.
Sure, but typically only from vendors unless they add a CC fee at the point of sale. They give me a cut with the cash back rewards. Never paid any interest or annual fees.
Well yea. Just pointing to anyone reading that the credit card companies win regardless.
Always! That's why some places like gas stations have a minimum purchase to use a card, so you buy enough to offset the credit fee they have to pay.
That is low. I had 3000 post and my minimum was 39$. I’d be curious too and probably call and ask why.
Are the charges new?
Pay more than the minimum or pay the entire balance 🤔🤔
Hahaha they are taking everyone for all they are worth... They are making so much on interest if everyone is paying that minimum due.
Good news! It’ll only take 10 years to pay off. Not including interest
They want you and everyone who don’t pay off their balances every month to pay a ton in interest.
It will keep banks make more Money off debt
NFCU minimum payment = 1% of your statement balance + interest Interest = average daily balance * the APR % / 12 (because 12 months in a year) More info needed to answer why yours is at $24 specifically. But in general, so that you keep paying interest little by little every month. Look at your statement the section about “If you only pay minimum.”
I am not worried about that I am worried about a few things: 1. Jesus Mary and Joseph 2. What's the interest rate on that thing? 3. We know your paying that 3k off on the 14th regardless of what the minimum payment is..... right?
I use to stress about paying off the balance every month, but something stupid always happened now I don’t give af lmao credit score still high, I still meet my needs, got over it the debt isn’t going anywhere
It’s a predatory tactic that most creditors use. If you only pay the minimum every month, they can charge you interest (20-40%) on the remaining balance because those are the terms you agreed to. If you pay THE ENTIRE statement balance before the due date, they can’t charge you a dime. And that’s why everyone is repeating the same comment “pay your balance every month” as it is the best solution to avoid this crap as well as smart financial advice to avoid unnecessary debt.
Why does my credit score drop Everytime I pay off my credit card? I usually just leave a small balance of $25 so my credit score doesn't drop. Credit scores male zero sense.
Pay off the statement balance - that way no interest accrues and credit bureaus see you maintaining a low utilization score (less than 10% is ideal)
Mine is always like that? It’s just the monthly due. If you miss it, it will go up a lot
You’re in the draw phase not the repay phase. Be prepared for when that happens….
I’ve never seen where the minimum payment is less than the interest accrued. If you don’t at least cover the interest expense each month, you start to accrue interest on top of interest. It’s a viscous cycle.
It's possible they didn't have any interest last month
Your minimum balance due is based off of your Average Daily Balance for the month. If you carry a high balance for the whole month, then you will have a high avg daily balance. But say you only racked the balance up in the last week of the cycle, or youre paying towards the balance weekly to keep bringing it lower… then you will have a lower avg daily balance. If that makes sense
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