Say for example, I get a credit card from Capitol One with a $500 credit limit. I purchase 1 item for $200 using my credit card. My account statement online shows Credit Balance- $300. minimum payment due at end of month is $15. Does this mean that all I need to pay is $15 now and every month from now as long as i dont buy anthing else? will I be charged interest every month on the remaning balance after I pay the $15 every month? how exactly does the system work? i am confused as to wheter you are charged interest if you make the minimum payments and dont go over the credit limit. any help appreciated
i thought the purpose of a credit card was to be able to make purchases upto credit limit and make the minimum payments at your leisure, say for example i got a $6,000 credit limit and i purchase a car for $5,000. My idea is that Im going to work for 1 year gettting paid $25/hr so if I make payments of $500 every month than in 10 months I will have payed off my credit card. Isn't this the purpose of a credit card. Or this some imaginary card I am picturing?

To avoid interest fees, you want to completely pay off that $200 you spend that month.

$15 is the minimum you must pay....so after you pay that you have a balance of $175 ....you will be paying interest on that $175 until it is completely paid off.

if you can pay more than the minimum than by all means do it otherwise it will take forever to pay off as the fees etc... will get you if you just make the min payment

You have it wrong. If you do not pay the balance off within approx.10-15 days (your statement says how long you have) then you are charged interest. No way around it. Those people who pay only the minimum payment are on what I call the never, never plan. Meaning their debts rarely ever get paid out in full.

I hate to say it, but you are stupid. You are borrowing money. The credit card company is giving you a grace period to pay it. They want you to pay the minimum. When you pay the minimum, you are going to pay interest on top of what you paid for the item.

No free lunches. Why do you think that there are so many bankruptcies in this country? Because people like you have no clues on how to handle credit.

Pay it off entirely, or don't buy it if you can't afford it.