credit card statement help

rose11

Don't know if anyone can help but I've got something on my credit card statement (co-op) and I don't know what it is, it says 'merchandise interest at 1.456% per month. I always pay my card off in full and the only thing I found out was I payed the one before in, 2 days before the due date, when i should of done it 4 days before. But I didn't realise then. I normally pay early. Hope this makes sense and someone can help.

simpywimpy

Ive noticed this on one of my credit cards. Its such a small amount but I've never heard of it before.

Its nothing to do with a late payment as mine is paid on time and in full too

NickX

Have either of you made any Cash Withdrawals ? If so, then you are charged interest from the Date of the Withdrawal with no interest free period.

Otherwise if you pay late, as I think the OP has done, then you forfeit your interest free period and will be charged interest from the Date of each transaction up until payment is received.

You will probably also be charged interest next month, this "Residual Interest" will be that accrued from the Statement Date until the date you actually made your payment.

jonesMUFCforever

..........Or any gambling transactions even topping up a Bingo account?

simpywimpy

def no cash transactions. think i did at some point join a gambling site as quidco was offering more cashback than the original deposit. i will check if thats what it might have been

jonesMUFCforever

simpywimpy wrote: »

def no cash transactions. think i did at some point join a gambling site as quidco was offering more cashback than the original deposit. i will check if thats what it might have been

This may well be it.
It will count as a cash advance - no interest free period and even if you pay in full this month there will be residual interest next month.
If you can pay the full bill + estimated interest for next month now.

rose11

I didn't make any cash withdrawals but I think I might of paid it in 2 days before the due date, and found out after you have to pay 4 days before. What shall I do pay it or question it? or do you think thats what it is because I was late?

jonesMUFCforever

A late payment would have incurred interest charge and also a late payment charge. Most charge £12 or so these days.
How much interest are talking about?

rose11

1.456% per month. I got charged £15.02.. Do you know what it means by merchandise interest? Hope I don't sound thick!

jonesMUFCforever

Interest on the balance from the last statement to this.