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Tina Mark Posted on Aug 21, 2015
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Will I Pay Any Interest On My Credit Line If I've Zero Balance?

My question is if I have zero balance, will I need to pay any interest on my credit line?

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Carol Terry

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  • Master 332 Answers
  • Posted on Aug 21, 2015
Carol Terry
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No. You pay interest on any amount you draw from your credit line. When your credit line is compensated to some zero balance, no interest will accrue.

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1helpful
1answer

Whatis1.5 percent interest on$6,300.0o pr annum

depends on how often you pay off principle and how much dollars.
and how often you are charged interest.
fv=pv*(1+interest rate)^n n being the term of interest
so lets assume you pay zero off it and interest is calculated daily
fv=6300*(1+0.015/365)^365
interest = fv - pv
= 95.21 for one year without repayment
if you were to pay approx 25.15 a week you would pay this loan in 5 years time and pay approx $240 in total interest over five years
EXCLUDING future interest rate increases over the five years and excluding bank fees like account fees or account manage fee or setup a loan fee.
You could create a spreadsheet each day and calculate the interest as annual interest / 365 for the daily calculation
Then add the account fee onto the balance calc + any set up fee onto the start balance. by using =a$5 for the repayment on all rows as an example you can copy it down and the cell number will always be a$5
this way you can alter a5 and the repayment alters all the way down each week row.
or just download a template for excel
https://templates.office.com/en-us/Loan-amortization-schedule-TM10073881
1helpful
2answers

I got behind on my payments and cannot afford to pay a lump sum. what can i do to pay a lesser installment

Call whoever you owe the money too, and tell them your situation. Ask them for help.
0helpful
1answer

If The Balance On My Business Line Of Credit Is Zero, Are Any Obligations Required?

In case you do not have an outstanding balance to your business line of credit, then no obligations are due.
0helpful
2answers

Do I Need To Pay Down The Loan To Zero Once Every Year Like My Bank Makes Me Do?

No. Capital loan doesn't have annual pay down requirement, unlike a lot of lenders.
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A $25000 home equity line of credit based on 7.8% APR annualized

No. To the nearest cent, the monthly interest is $162.50. The monthly payments only pay the interest, without reducing the principal.
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