Interest after One Day?

Coconut_Man

Is it possible to accumulate interest in just one day on a CC?

For example if a £50 purchase is made on the 23rd, but my statement date is the 24th of the month, is it possible that I have a 2 pence interest charge already with hardly any chance to pay it off?!

Thanks in advance.

normanmark

Yeah if you purchase something before your statement date then you would need to pay it off on that statement that comes through. Obviously if you don't pay off the full balance that month then you'll accrue interest, which will appear on the next statement

KiKi

If you have an interest charge on a current statement, it's probably due to not paying off your previous statement in full. But re your question, you wouldn't have accrued interest already from the current period, no, as you haven't had a chance to pay it off, yet.

UNLESS:
* you made a cash withdrawal which accrues interest from day one
* you used the card on a gambling website, many of which *do* incur interest from day one, regardless of whether or not you pay your card off in full

It could also be that:
* you used your card to pay for something which charged a percentage fee for credit card use (like booking flights)
* you made a cash withdrawal which charged a fee


I hope that helps. Otherwise, phone your CC company.

KiKi

Coconut_Man

KiKi wrote: »

If you have an interest charge on a current statement, it's probably due to not paying off your previous statement in full. But re your question, you wouldn't have accrued interest already from the current period, no, as you haven't had a chance to pay it off, yet.

UNLESS:
* you used the card on a gambling website, many of which *do* incur interest from day one, regardless of whether or not you pay your card off in full

That would explain it - the charge is from a gambling site.

Thank you for the advice

normanmark

Coconut_Man wrote: »

That would explain it - the charge is from a gambling site.

Thank you for the advice

You'll probably be charged a cash advance fee as well as cash interest from the date of transaction

NickX

Gambling Transactions are usually treated as Cash Advances by Credit Card Companies.

These accrue interest at an extortionate rate from the date of the transaction (no interest free period) and usually incurr a cash advance charge. Not adviseable unless you have money to burn.