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  • FIRST POST
    • anonymous_user
    • By anonymous_user 11th Sep 17, 8:13 AM
    • 2Posts
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    anonymous_user
    Credit Card Interest?
    • #1
    • 11th Sep 17, 8:13 AM
    Credit Card Interest? 11th Sep 17 at 8:13 AM
    Hi Guys,

    I'm new to MSE and was wondering if anyone can help me? I currently have £1,500 on a credit card of which I have been paying the minimum amount each month. My question is, if I pay the full amount off now and then use the card to pay my bills during the month would I avoid interest?

    Many Thanks in advance for your help.
Page 1
    • zx81
    • By zx81 11th Sep 17, 8:15 AM
    • 13,172 Posts
    • 13,485 Thanks
    zx81
    • #2
    • 11th Sep 17, 8:15 AM
    • #2
    • 11th Sep 17, 8:15 AM
    There would be some residual interest on the next statement, but once you have cleared two consecutive statements in full, there would be no interest if you continued to clear in full each month (assuming no cash transactions etc).
    • anonymous_user
    • By anonymous_user 11th Sep 17, 8:18 AM
    • 2 Posts
    • 0 Thanks
    anonymous_user
    • #3
    • 11th Sep 17, 8:18 AM
    • #3
    • 11th Sep 17, 8:18 AM
    Ok thank you, so paying the card in full each month and using it solely for the usual bills etc means I could lose the 30% interest altogether going forward?
    • zx81
    • By zx81 11th Sep 17, 8:32 AM
    • 13,172 Posts
    • 13,485 Thanks
    zx81
    • #4
    • 11th Sep 17, 8:32 AM
    • #4
    • 11th Sep 17, 8:32 AM
    Yes, as long as you clear in full each month.
    • chattychappy
    • By chattychappy 11th Sep 17, 8:33 AM
    • 6,297 Posts
    • 3,298 Thanks
    chattychappy
    • #5
    • 11th Sep 17, 8:33 AM
    • #5
    • 11th Sep 17, 8:33 AM
    Unless you're on a special deal, it really is a mug's game paying minimums. If you have the funds, pay down the balance as much as possible. The more you pay, then the less interest you will pay.

    If you pay off the full balance now, then you won't get any interest on further purchases provided you continue to pay in full each month. As zx81 notes, you will see some interest on your next statement - this will be interest between generation of the last statement when your full payment arrived.
    • phillw
    • By phillw 11th Sep 17, 8:44 AM
    • 803 Posts
    • 400 Thanks
    phillw
    • #6
    • 11th Sep 17, 8:44 AM
    • #6
    • 11th Sep 17, 8:44 AM
    My question is, if I pay the full amount off now and then use the card to pay my bills during the month would I avoid interest?
    Originally posted by anonymous_user
    No. You normally only avoid interest in a month if you had paid the previous statement balance on or before the "to reach us by" date.

    If you phone them up and pay off the balance & switch the direct debit to taking the full amount, then you might be able to get them to waive the interest. I've been able to do that when I've messed up the dates coming out of a 0% deal, you have less leverage but it never hurts to ask nicely.
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