V A N Q U I S

never-in-doubt

dawnie1972 wrote: »

But will i be charged interest if i don't pay the balance at the time i ring up ie if i only pay the £76 despite that being the balance on my statement.

Of course - you get charged interest from the day of purchase so if you want to pay the lot to save a few pence on interest then do it - its up to you..... :beer:

izools

As long as you pay the balance printed on the statement every month, it doesn't matter what the account balance is at the time of paying.

Best bet is to set up a Direct Debit to have the statement balance taken in full automatically

never-in-doubt

izools wrote: »

As long as you pay the balance printed on the statement every month, it doesn't matter what the account balance is at the time of paying.

Best bet is to set up a Direct Debit to have the statement balance taken in full automatically

But it does as described above, in that say the statement is produced 5th of the month with repayment date as 25th. The balance would be £100 on the 5th but say the OP spends another £800 before they pay the balance then guess what? they'll pay more interest!

izools

That's not how it works.

As long as the statement balance is paid before the due date every single month no interest charged - it doesn't matter what the balance is on the due date.

Otherwise, how would setting up a DD to clear the full amount ensure no interest is charged?

Example - my Vanquis bill is producted on 8th November with a £150 balance. Direct debit is due to be taken on 4th December, but I've spent more on the card by that time so when they take the £150, my balance is in fact £230, so I have £70 left, which will appear on my next statement (december 8th).

Think about it

never-in-doubt

Interest is charged from the day of purchase though, so in your case i'd assume that you'll have a lot of trailing interest to be added in decembers bill......

Therefore you had £150 on 8th November and paid this 4th December but the extra £80 you spent would be charged interest from the day you used it to the next bill date....

Is it me confusing myself here? lol - I always pay my cards in full at statement date but every month I get some trailing interest so my HSBC statement that just arrived has a £0 balance but £2.86 interest from the last months usage....

Now I am confused lol

izools

Never-in-doubt, I think you might be confusing yourself here.

Let me put it this way:

If your suggestion was correct, then having a direct debit set up to clear the full balance every month, wouldn't ensure no interest is charged, would it?

I.e. if the Direct Debit Date is 20 days after the Statement date, and the card holder spends any money between the statement date and the direct debit date, in any given billing cycle, then they would be charged interest the following month, if your suggestion was correct. But this can't be the way it works, as having a DD set up to take full amount ensures no interest, doesn't it?

Get my drift, or am I just confusing matters further?

NickX

You just need to pay the STATEMENT BALANCE in full every month to avoid paying interest.

Basically as Never-in-Doubt says all transactions accrue interest from the date they are made to the date they are settled. However the vast majority of cards (only exception I can think of is a the Lloyds TSB Advance product) there is a special provision that if you pay your statement balance in full then no interest is charged, hence the often quoted "up to 58 days interest free".

If you do not pay the statement balance in full, your next statement will show all the interest accrued on all your transactions. Even if you pay that one in full, there will still be "Residual Interest" the following month. So, the only way to avoid interest altogether (unless you have a 0% purchases promotion) is to pay the Statement Balance in full every month.

BankReclaimRebel

I got my Vanquis card through the post yesterday, activated it today!!!

I was suprised to see that the APR for purchase's is only 34.9% where as I thought they told me it would be 39.9% I know it's not a lot but every little helps....

Just need to start spending a bit and paying off the balance in full every month to avoid interest...

never-in-doubt

NickX wrote: »

You just need to pay the STATEMENT BALANCE in full every month to avoid paying interest.

Basically as Never-in-Doubt says all transactions accrue interest from the date they are made to the date they are settled. However the vast majority of cards (only exception I can think of is a the Lloyds TSB Advance product) there is a special provision that if you pay your statement balance in full then no interest is charged, hence the often quoted "up to 58 days interest free".

If you do not pay the statement balance in full, your next statement will show all the interest accrued on all your transactions. Even if you pay that one in full, there will still be "Residual Interest" the following month. So, the only way to avoid interest altogether (unless you have a 0% purchases promotion) is to pay the Statement Balance in full every month.

Thanks Nick - that makes crystal clear sense....... I wondered why I always had a few pounds left to pay and I bet this is cos as I stated, I pay in full, but I sometimes do it over 2 payments for instance the DD takes the min payment then a day or so later I pay the balance and I reckon that's why I always have a few quid left to pay - so me thinks its time to change to full payment via DD to save myself what could be £30 per year! :rotfl:

Cheers matey :beer:

izools

BankReclaimRebel wrote: »

I got my Vanquis card through the post yesterday, activated it today!!!

I was suprised to see that the APR for purchase's is only 34.9% where as I thought they told me it would be 39.9% I know it's not a lot but every little helps....

Just need to start spending a bit and paying off the balance in full every month to avoid interest...

VANQUIS are very naughty - they quote the simple interest rate with the card - 34.07% or something like that?

This is actually 39.9% APR; but they don't compound the interest when quoting it on correspondence