Barclaycard Interest

Ralphonline

Hi everybody,

I’ve recently read a post which says that Barclaycard only apply payments made when the next statement is made up, which is one day after the due by date.

If I was to make extra payments once every week to my Barclaycard, would the interest on these extra weekly payments only be taken off at the actual next statement date, instead of the interest being taken off weekly.

Also if I was to pay in full well before the Due By/Statement date of 22nd of each Month, say by paying my full outstanding balance on the 8th, would all the interest stop immediately after this payment is received, apart from any residual interest, or would I still be charged interest on the full balance up to the statement date of the 22nd.

Thanks.

Best wishes,

Paul.

Milarky

The interest is 'taken off' (by which you mean the daily rate rate of interest is reduced) instantly whenever you make a payment 'on account'. That's the same for Barclaycard as all other credit cards...

Ditto for paying the full statement balance; as soon as a payment is received no interest is charged for the value of that payment. The daily rate drops instantly. In the case of a full payment the daily rate drops to nil. No more interest is accrued and the only interest that will get added is any interest incurred for the days before the payment was made...

Ralphonline

Thanks Milarky,

I thought that was the case, but the below statement by methusala in the Residue Interest Thread, confused me.

Quote from methusala:

Barclaycard are even worse as they only allocate payments to your account on your statement date, regardless of when they recieve them. So you will have paid interest in the above case from June 10th to June 30th when they will have allocated your payment to the debt.

http://forums.moneysavingexpert.com/showpost.html?p=12488389&postcount=4

I should be able to pay off my Barclaycard just within the next five weeks, I just wanted to be sure that paying them weekly would save me a little bit of Interest.

Thanks again Milarky mate, greatly appreciated.

Best wishes,

Paul.

Milarky wrote: »

The interest is 'taken off' (by which you mean the daily rate rate of interest is reduced) instantly whenever you make a payment 'on account'. That's the same for Barclaycard as all other credit cards...

Ditto for paying the full statement balance; as soon as a payment is received no interest is charged for the value of that payment. The daily rate drops instantly. In the case of a full payment the daily rate drops to nil. No more interest is accrued and the only interest that will get added is any interest incurred for the days before the payment was made...

NickX

Milarky wrote: »

The interest is 'taken off' (by which you mean the daily rate rate of interest is reduced) instantly whenever you make a payment 'on account'. That's the same for Barclaycard as all other credit cards...

I don't think this is the case for Barclaycard actually.

If you make a payment before the Due Date, then they will only reduce the interest bearing balance when the next statement is produced, therefore any interest saving by making a payment early is completely wiped out. You may aswell pay on the Due Date (although I wouldn't advise this as you don't want it to end up late and incurr an additional fee).

Moggles_2

NickX wrote: »

If you make a payment before the Due Date, then they will only reduce the interest bearing balance when the next statement is produced, therefore any interest saving by making a payment early is completely wiped out. You may aswell pay on the Due Date

That's right. If memory serves, Barclaycard wrote to existing customers last October/November time about this change in its terms.

Dithering_Dad

:spam: :spam: :spam: :spam: :spam: :spam:

Hey guy, I have many idea what to do with your crappy spam...w hy don't you %$"£ off with it?

Ralphonline

Thanks Guy's,

You've all been a great help, it looks like Methusala was right about Barclaycard, not a lot of people seem to be aware of Barclaycard changing the way they apply payments to each statement, especially me.

Moggles, Just noticed that you replied to Methusala in the Residue Interest thread, about Barclaycard changing these conditions.

Thanks for your help once again Guy's, really appreciated.

Best wishes,

Paul.