Credit Cards

# HOW to stop paying Credit Card interest?

• Last Updated:
• Jan 17th, 2018 10:26 am
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[OP]
Sr. Member
Nov 22, 2003
841 posts

## HOW to stop paying Credit Card interest?

Suppose you have a Credit Card
(e.g. Ultramar National Bank Credit Card with 20% annual interest rate).
Suppose you have not made the full payment in February.
On Apr 5th you make a 500\$ purchase.
On Apr 10th you make a 1000\$ payment.
On Apr 15th you will make a 200\$ purchase.

Suppose you want to make another payment on Apr 10th.
HOW MUCH MORE DO WE NEED TO PAY TO STOP PAYING 20% INTEREST (0.00548% daily) ? Is it:
A) 5.48\$ --> 10 days of interest on 1000\$ ?
B) 6.85\$ --> 10 days of interest on 1000\$ + 5 days of interest on 500\$ ?
C) 506.85\$ --> 10 days of interest on 1000\$ + 5 days of interest on 500\$ + 500\$ ?
D) 706.85\$ --> 10 days of interest on 1000\$ + 5 days of interest on 500\$ + 500\$ + 200\$ ?
E) none of the above

In case I am missing a detail, here is the specific Credit Card convention:
https://www.nbc.ca/content/dam/bnc/en/f ... -bn-an.pdf
3 replies
Deal Fanatic
May 9, 2009
6777 posts
Montreal
You need to pay the remaining balance in full (\$700) to stop the interest. There's no need to pay the residual interest ahead of time as it only gets calculated on your next statement date. If you pay the balance in full, your next statement will be for just the residual interest and nothing else.

Once you're ready to pay the card in full, you can call NBC customer service and they'll calculate what you need to pay including residual interest.
Jan 16, 2016
1477 posts
Hamilton, ON
Don’t use a credit card if you can’t pay the balance in full. You have bigger problems at hand if you have to ask this question.
Deal Expert
May 8, 2009
15548 posts
Going to the Moon
\$1,000 balance isn't bad. Most Canadians can crunch that without too much hassle, especially if your credit is good enough to qualify for a credit card that won't auto-approve even the homeless.

OP I don't know your situation, but I am responding in a generic way on your thread.

I'd recommend applying for the MBNA PP MC. Balance transfer is 1% upfront, then 0% for 12 months (you must pay at least the minimum payments on each statement, and highly recommend paying off the balance by the time the 12 months run out).

MBNA will probably approve a credit limit of \$2k-5k. Make sure you apply via GCR for the \$60 gift card that'll offset your 1% upfront. There's a massive thread on that card. Please ask all questions about that card there (after reading OP at least seven times).
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