interest

kirsty000

How is interest calculated on credit cards? is it daily or monthly? The reason im asking is because im wondering if to pay £5 a week of my credit cards plus the monthly payment, or just pay more than the usual monthly payment when my statement come? does it make any difference?

lisyloo

It will usually be calculated daily so there IS an advanatage to paying as soon as possible.

Depending on how you make payments you need to allow for clearance.
So if you make an on-line BACS payment then it could take 4 working days to reach your account.
It's still better to pay it off earlier though if you can.

milliemonster

I think it is usually daily but the T&C's will tell you

NickX

lisyloo wrote: »

It will usually be calculated daily so there IS an advanatage to paying as soon as possible.

No advantage with Barclaycard (and possibly others).

Barclaycard calculate interest on the basis that the payment is not received until the Due Date even if the payment is received before then. So interest is calculated for the maximum number of days within the payment cycle regardless of when the payment is received.

So with Barclaycard (and quite possibly other providers) there is no advantage to paying as soon as possible.

nomoneytoday

TBH the interest on £5 paid early would be negligable (sp)
Assuming 15.9% APR - £5 costs 80p a year in interest - or 1.5p a week

That comes out as 9p a month saving (3 weeks x £5 x 15.9%/365 + 2 weeks x £5 + 1 week etc)