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AA Credit Card introduces Compound Interest.

flupeb
flupeb Posts: 7 Forumite
in Credit cards
AA Credit Card is to start charging Compound Interest on purchases from June 09.
The current charge is 24.93% pa - the Compound Interest charge will cost an extra 30p per month for every £100 unpaid/outstanding on an account.
Needless to say I have closed my account.

Comments

  • Paul_Herring
    Paul_Herring Posts: 7,484 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    "Start charging"?

    I thought, being a credit card and all, if it wasn't paid off completely every month, you'd effectively have compound interest on it anyway.

    Got a link?
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • flupeb
    flupeb Posts: 7 Forumite
    Informed by letter from AA,
    The current charge for outstanding balance is 24.93% pa - but from June they will be charging compound interest thus increasing the monthly payment by an extra 30p for every £100 still owing.
  • posted_2
    posted_2 Posts: 514 Forumite
    edited 7 May 2009 at 3:35PM
    If you had the money to pay off the card, then you wouldn't need to pay any interest.
This discussion has been closed.
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