Sunday, August 9, 2009

What can I expect for a minimum monthly payment on this credit card purchase?

I just got my credit card account re-opened after paying off a $1200 debt. They reopened the card with 10.99% APR and an $1100 credit limit.



If I made a purchase that was $900 next week, knowing that I will pay it off in under 2 months, would this be a good idea? How much can I expect my monthly minimum payment to be? I already have a payment plan set out for me to pay off the $900 and I know for a fact it will be paid off in 2 months time. That means that I will still have a balance on the card after the first month...



but my main question is, what can I expect my %26quot;minimum%26quot; payment to be after the first billing cycle? And how much money will be added on every month there is a balance due? I never use credit cards, always just an ATM card. Thanks



What can I expect for a minimum monthly payment on this credit card purchase?

Your minimum payment is likely to be 1% of the balance. If you carry a balance into the second month, you will be charged interest on any other charges from the day you make the purchase.



The best way to minimize interest if you have to make the purchase now rather than saving the money, is to



charge the $900 and then pay as much as you can on the first bill, and then don%26#039;t use the card again until you pay it off in the second month.

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