MBNA £1 minimum interest

JoolzS

I've only be paying proper attention to my credit card statements for the past few months and this month I noticed that although I had only spent £4.88 on my MBNA card, I was charged £1.00 interest.

Looking at the small print on the back of the statement, I notice that it says "You will be charged ..... a minimum interst charge in each statement period of £1.00;".

I was wondering if this £1.00 charge will be added to my next statement, as I know I won't be spending a single penny on this card this month. I have searched the forums, but can't find any other posts about this.

TIA

Julie

thriftymomma

Do you have a balance currently on your card?

JoolzS

My apologies - I didn't make it clear in my first post.

The entire balance owing on my last statement was £4.88. I was then charged £1.00 interest on that £4.88! As my balance next month will be £0.00 I would rather cancel the card than pay a £1.00 "interest" charge for nothing.

Julie

oscar52

the £4.88 - was this a new transaction, or remaining from the previous statement?

If the latter, then residual interest means that the charge is vlaid - you would have been charged interest from when the statement was produced to when you paid it.

JoolzS

It was a new transaction. On my previous statement I owed around £200.00 with a payment due date of around the 15th April which was paid in full on the 9th April. On the 3rd April the £4.88 charge was added (it's an old monthly outgoing that I'd forgotten to move to a new card) and on 23rd April (the date of the statement) the £1.00 interest was added.

I'm not overly worried or bothered by this particular £1.00 charge (although mildly annoyed at paying £1.00 to borrow £4.88 for less than three weeks!) - I'm more concerned that I will be charged £1.00 next month on a balance of £0.00. If that is the case, then I will be cancelling the card.

Just for futher clarification - I have had no late payments, over-borrowing or anything else on this card. It has a very large credit limit and I have never owed very much on it.

Julie

CLAPTON

the usual rule is that you need to pay in full for two consecutive months before interest is stopped ...

oscar52

Does it say estrimated interest?? If so, this is just a guideline - if you pay in full, before the due date, no interest shoul dbe charged.