how does the credit card float actually work in regards to billings ?

[zuki]

i heard you can float the balance for up to 44 working days.

but the monthly billing statement combines the balance total for all purchases.

how can i keep track of what i bought (avoid any fee's,while taking as long as possible to pay balance)during a specific month, if the card company combines the totals into one balance ?


* use* 2 cards and rotate them every other month ?

or just pay what i bought for last month and the card co. automatically corrects for it ?

[justin]

If you really wanted to, you could float your balance for up to 55 days. This seems like a big time-waster for the benefits you'll receive, but here's how to do it. Let's say billing period starts on 9/1/2005 and closes on 9/30/2005. You have a 25 day grace period, so the bill is due 10/25/2005. Only charge on that credit card from 9/1-9/3, then use a different CC with a billing period starting 9/4/2005 and repeat process. Your 9/1-9/3 purchases would have 53-55 days before the bill is due.

Is this what you meant?

[runchman]

I never saw what was so great about this whole float idea. Sure it's great if you have a one-time purchase and you can delay payment, but suppose like most of us you charge all your junk on the card, then pay it off every month.

So you're paying, say, $2k per month every single month. You've gotten the benefit of the float on month 1, but thereafter you're shelling out the same each month. Big whip, no savings.

- John

[justin]

I agree. Penny wise, pound foolish.

[moghopper]

Quote:

Originally Posted by runchman So you're paying, say, $2k per month every single month. You've gotten the benefit of the float on month 1, but thereafter you're shelling out the same each month. Big whip, no savings.

So pay it off before you make purchases.

[Andre1969]

I guess you could just use one card for the major, occasional purchases that you want to "float" and another card for your more mundane everyday purchases.

Quote:

So you're paying, say, $2k per month every single month. You've gotten the benefit of the float on month 1, but thereafter you're shelling out the same each month. Big whip, no savings.

Yes. And the same logic applies to, for example, paying property taxes before January 1, so that you can deduct them on your current year's tax return.

[zuki]

i wanted leave as much of my money in money market account as long a possible before i pay the bill, making the most interest i possibly can on the money before transferring it out to the credit card bill.

[AltaRed]

Seems like a huge waste of time given interest rates on MM funds. Might save a whole dollar or two each month.

[zuki]

c/c float.

it is just one part of this tardus financial program i hear about on the radio.

it claims that if done properly, paying off a home in 9 years is easy.

[zuki]

i called and they asked me things like. do you have pool cleaning bill or landscaping bill ?

i thought why.

they said bills which can be paid by these credit card allows my money to sit in a market account making % until i float/pay it off at the deadline of each months grace period.