Trailing interest

witho_2

Hi all - I'm new to Money Saving Expert so forgive me if I've put this in the wrong place

My Goldfish Mastercard (which I've had for 10 years) has recently become a Barclaycard Goldfish Mastercard, and I've just been introduced to the lovely concept of trailing interest. I got a statement showing a balance of 42 pence, despite the fact that I'd paid off the remaining balance on time the previous month. I got a garbled explanation from the call centre, who said that all credit cards did it. Googling seems to suggest the same thing.

Well, my old Goldfish Mastercard never did, and I'm not sure I like it.

Does anyone know if there are any credit cards out there which don't charge trailing interest? If so, I will be closing my Barclaycard account forthwith! I haven't managed to find a comparison site which says whether or not trailing interest applies - if anyone could point me in the right direction, I'd be very grateful.

Thanks in advance

Witho

ShelfStacker_3

HSBC's don't. Only found that out today.

CLAPTON

not enough info here


In general nearly all credit cards charge no interest if you pay in full each and every month (unless cash has been withdrawn)
however, if you do pay less than the full amount then interest will be charged until two consecutive months have been cleared in full.

witho_2

Hi Clapton

I'm not questioning credit card companies charging interest if the full balance is not paid each month, but this is the first time I've encountered trailing interest in the month following clearing the remaining balance. It may well be that "nearly all" companies do it, but my old Goldfish card did not and my question was if there are any remaining credit cards which do not do this.

Personally, I use a credit card for purchases that I want to spread over a period of time, so it's quite normal for me to pay it off in bits (always above the minimum and always on time) and this is what I've been doing for years, so I was quite surprised to be charged extra interest after paying off the remaining balance.

CLAPTON

I believe Goldfish did indeed charge on the basis I've described... I can't explain why they didn't charge you. Perhaps you had specific T&Cs dating back 10 years.... I'ld be interest if you could post them up.

Shelfstacker says that HSBC don't but I can't see the full T&Cs on their web site to check.

witho_2

I find it hard to believe that I would have had different conditions to anyone else. I'm not here to argue about whether or not I was charged trailing interest with Goldfish, because the fact is quite simply that I wasn't, until it was taken over by Barclaycard.

NewbieMoneySaver**

I have had in the region of 20 or so cards over the past few years and all of the lenders as far as I can remember do this. What I have always done is clear the balance and usually a bit more and then just ask for a cheque to be paid to my home address. The account can then be closed.

I did have the card you are talking about and cannot recall this happening.

witho_2

Well, thanks for the info. Sounds like my old Goldfish was the exception rather than the rule!

tuggy12

Witho, sounds like you had a cash transaction somewhere in your statement.
You would then be charged interest on that cash amount from the date of the statement until your payment was received.
That interest will be charged on your next statement.
This is normal and all companies do it now and most have done this for several years.
Goldfish definitely charged interest in the same way, perhaps you just didn't have any cash transactions?

JulieM

I have a capital one platinum card which does not charge trailing interest. However, I've had it for about 15 years so my t & c may be different.

tuggy12

JulieM wrote: »

I have a capital one platinum card which does not charge trailing interest. However, I've had it for about 15 years so my t & c may be different.

If you make a cash transaction, you will find that they do charge trailing interest.