Credit Card Interest Payments - Basic Question!

SPACER

I have a question over a credit card statement that's only resulted in a charge of a few pence but has made me question how these things are calculated. I've had credit cards for the best part of 5 years, generally interest free and always paying off the full amount before any interest is due. However, on my last zero percent month with a 'Yorkshire Town' CC provider, (for some judicious reason at the time) I paid the amount due a week or so after the zero percent offer ended. This incurred a bill which I paid in full before the due date. Now, a month later, I've received a bill for those few more pence - yes! I know it's not much, but I'd always thought paying a bill in full one month means it's paid full stop? Any answers to my very basic question? Is the amount accruing interest whilst the statement is being printed and posted, and while I'm walking to the bank to pay it?

It's just got me thinking that if the amount in MONTH 1 was say a couple of hundred pounds which was accruing interest, and I paid this in full then MONTH 2 might be a pound or so by the time I got to the bank? So then I'd get a MONTH 3 statement which has a similar charge for a few pence? Seems like a waste of time for me running to the bank / posting a cheque for pennies, and a waste of money for H*L*F*X to post me statements for these amounts.

Apologies for my first post being over pennies, but I'd like to understand the basics here, many thanks,

SPACER

YorkshireBoy

SPACER wrote:

...I paid the amount due a week or so after the zero percent offer ended. This incurred a bill which I paid in full before the due date. Now, a month later, I've received a bill for those few more pence - yes! I know it's not much, but I'd always thought paying a bill in full one month means it's paid full stop? Any answers to my very basic question?

The additional interest is for the period from when your (first interest bearing) statement is produced to the date your payment clears.

Look in your T&C's for something similar to Virgin's condition 2d...

We will charge interest on handling fees, and on interest you already owe, at the rate which applies to the relevant transaction. We will not charge interest on the card purchases shown on your statement if you pay off the whole balance shown on that statement, and on the statement before, by the date the payment is due...

King_Of_Fools

Yes, once you start paying interest you get into the interest-on-interest effect situation. The amount owed on your statement is only valid on the day it is printed and will go up every day after that. The due date is just when the minimum payment has to arrive by.

You can either overpay by a few pence to cover the interest accrued or you can ring them up and ask what the current balance is and pay it off by debit card straight away.

Count yourself lucky you are not with RBoS/Natwest. They have a minimum interest charge of £1!

SPACER

Many thanks to both of you, I tried to pay by debit card but funnily enough someone along the line wasn't happy to make / receive a card payment for those damn few pennies! All going well compound interest will be working in my favour in a few months time...