Credit cards interest question?

Question

I just turned 19 and was approved for a credit card and want to start building my credit rating. I have wells fargo college credit card with 9.9% and was wondering will there be interest on everything i buy? or is it if i dont pay when the due date is. I have it set up to my checking account so it automatically pays the minumin amount due.

Answer 1

Congrats on your 1st credit card...use it very very wisely...it can make or break you!

You are not automatically charged interest. You are only charged interest on any outstanding balance after the due date. If you charge something on the card for $100 on July 1st and you bill is due on July 20th and you only pay $20 then the remaining $80 will attract interest. Don't make this a habit try and pay in full and ALWAYS pay on time.

You can add the bill to your chequing account if you want just be diligent on making sure it's actually paid....if there's a time when you don't have enough money in your bank account or something goes wrong...you're sitll obligated to pay .

Answer 2

You need to pay the WHOLE balance by the due date to avoid interest, not just the minimum.  Having the minimum taken automatically is a good idea, though.  It avoids late charges on top of the interest.