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What Is Interest Saving Balance On Chase Credit Cards? (Explained)

What is Interest Saving Balance on Chase Credit Card

Interest Saving Balance on Chase Credit Card is the minimum amount you pay off your credit card balance on or before the due date.

Once paid, you won’t be paying interest on further purchases till the next due date.

Meanwhile, you should pay off the interest-saving balance only when you cannot clear your statement balance. Your statement balance is the summary of your purchases for a billing cycle.

Chase included the interest saving balance feature to provide its users with credit payment flexibility and prevent them from paying a late fee when the minimum payment is due.

While this might look like a favor, it has its bad side.

Paying off only the interest-saving balance on your account every month will make your balance add up over time. When your balance adds up, it becomes too high to manage.

Another downside is that you might have to pay a larger minimum interest charge. 

Chase already stated in their credit card glossary that you would pay more interest charges if you only paid off the monthly minimum payment. 

So, you should pay off your interest-saving balance only when you cannot clear your statement balance before the due date.

Do I Pay Interest If I Pay Statement Balance Chase?

You won’t pay interest if you pay off your full statement balance. However, you will pay a residual interest charge. 

The residual interest charge, also called trailing interest, is the total interest accumulated from the date you received your last statement report until the date you pay off your full balance.

This interest accumulates daily as long as you have an unpaid balance in your account. The residual interest charge is reflected in your statement only after a billing cycle is completed.

Does Chase Charge Interest Every Month?

Chase charges interest every month, which often comes in the form of a finance charge on your bill. The details about the Chase interest charge are explained in their cardmember agreement.

You will get this agreement when you open a new chase credit card account.

The monthly interest rate may vary based on several factors.

For instance, you will pay more interest charges when you roll over a loan balance from one billing cycle to the next.

For better illustration, if Michael makes $1000 in purchases, pays $600, and carries a balance of $400 to the next billing cycle, interest will begin to accumulate every day on the balance.

Michael might not notice the interest accumulation until the next billing cycle statement is released.

Another form of interest charged monthly is the residual interest explained earlier. This interest adds up on balance every day till the next billing cycle. If you fail to pay off your balance when due, you attract a late fee.

How Can I Avoid Interest in My Credit Card?

There is no proven method to avoid paying interest on your credit card. You can only pay down on your credit card.

One of the ways to pay down your credit card is by paying off your balance regularly. Don’t wait till the payment is due before clearing the balance. Remember that interests add up on your credit balance daily, implying no credit balance, no interest.

In case you have a roll-over balance, paying off your balance for two consecutive billing cycles is a good way to avoid interest accumulation.

That way, you have paid the roll-over balance and the residual charge in the new statement.

Should I Pay My Statement Balance or Current Balance with Chase?

Generally, paying off your statement balance at every billing cycle is advisable to avoid rolling over the balance, which attracts more interest

However, it all depends on your financial goals and situation. If you cannot clear your statement balance when due, do not hesitate to clear your current balance.

Final Thoughts

Interest saving balance is the amount to pay off your balance to prevent you from paying extra interest charges. Chase may include a residual interest accumulated on your balance in the previous billing cycle to your statement. 

Ensure you pay off your balance regularly to avoid accumulating interest on your card. Also, try to clear your statement balance when it is due to avoid paying a late fee.