MBNA Charges

Laurda

Has anyone else been caught out by the way that MBNA charges interest on it's credit card? My son has today found out that they charged him interest from the day of the statement up until when the payment is made, so therfore the quicker you pay it off the less you are charged. Although they put a due date on the statement that does not mean you have until that date to pay off your account without being charged interest. Needless to say he will be closing the account, as it was not 3 months interest free after all!!! He had also paid off the previous amount in full 14 days before the due date!

CLAPTON

Usually CC work this way

1. Interest accrues from the date you spend the money to the date you pay it off.
When a statement is received it (obviously) only shows the interest up to the statement date so even if you then pay it off in full, there will be residual interest from the statement date to the pay date on the following statement.

2. However, if you pay in FULL each and every month then no interest is charged

3. Unless of course you draw cash from an ATM (or use certain sites/shops.. betting, currency purchase) when interest is charged from the date of withdrawal.


this is normal for most / all credit cards

Laurda

Hi thanks for your reply, I do understand because I have credit cards myself, but I have never come across one that charges interest from the statement date until the payment due date, my son was supposed to have 3 months interest free, but instead only had two and a half months, He had also paid off the previous month in full and 14 days early!

YorkshireBoy

Laurda wrote: »

...I have never come across one that charges interest from the statement date until the payment due date, my son was supposed to have 3 months interest free, but instead only had two and a half months

MBNA promotional periods always end on a statement date.

Did he also transfer a balance to the card when he took it out?

Laurda

No he only made one purchase which was his annual season ticket, he paid that off in full 14 days before the due date.

Hippyer

CLAPTON wrote: »

Usually CC work this way

1. Interest accrues from the date you spend the money to the date you pay it off.
When a statement is received it (obviously) only shows the interest up to the statement date so even if you then pay it off in full, there will be residual interest from the statement date to the pay date on the following statement.

2. However, if you pay in FULL each and every month then no interest is charged

3. Unless of course you draw cash from an ATM (or use certain sites/shops.. betting, currency purchase) when interest is charged from the date of withdrawal.


this is normal for most / all credit cards

Sorry to jump in on this thread but I have a question about point number 2.

What happens if you begin only paying off a portion off a certain card and then after some time have fully cleared that card.

If you were to begin using this card again would you be charged interest if you paid it off at the end of each month?
Or is this a one time only offer and once it's gone it's gone?

CLAPTON

Hippyer wrote: »

Sorry to jump in on this thread but I have a question about point number 2.

What happens if you begin only paying off a portion off a certain card and then after some time have fully cleared that card.

If you were to begin using this card again would you be charged interest if you paid it off at the end of each month?
Or is this a one time only offer and once it's gone it's gone?

For a normal card i.e. one not on a promotional offer, then once you start to pay interest, you need to pay in full for two consecutive months before the interest stops.

Hippyer

CLAPTON wrote: »

For a normal card i.e. one not on a promotional offer, then once you start to pay interest, you need to pay in full for two consecutive months before the interest stops.

Interesting. 2 months ago I paid off the full amount stated on my statement.
Then when the next month's statement came it said I had to pay 10p which was interest.

I wasn't expecting it but I got over it and paid it off

So I guess that means I have paid the last two months off in full have I not?