When I pay off My C-Card Will I get another Bill?

Love2Spend1986

Hi,

This may seem like a stupid question but ive searched everywhere on-line and can't seem to find an Answer.

I've paid off my Credit card in full, Now will I get a bill next month if I make no other purchases on the card.

Now I know the obvious answer is no. But the part of my bill that confuses me is the "Next Month's interest". When I pay off the balance will i get a bill the next month for the interest that was added before i paid off the card?

thriftymomma

Yes you will. It is called residual or trailing interest. So to clear a balance completely, you need to clear it two consecutive months. Hope that helps.

Love2Spend1986

How much can roughly I expect to pay? My Estimated interest for May was £40.00. My next payment is Due on the 2nd of June. So I've cleared the balance around 25 days beforehand. I find this is a grey area in credit cards and reading through the T&C's of my Card statement it wasn't even mentioned

nzseries1

This is just a rough estimation, but...
Let's assume your APR is 19.9%. Convert that to a decimal, you get 0.199.
Divide this by 365 to get daily interest = 0.000545
Multiply this by the number of days between your statement date and when you paid it off - I'm assuming that's 6 (31 - 25): 0.00327
What I don't know is how much your balance was when you paid it off!

Multiply 0.00327 by that balance to get your answer.

E.g. if the balance you paid off was £4,000, then multiply 4000 x 0.00327 = £13.08 interest (roughly).

thriftymomma

nzseries1 wrote: »

This is just a rough estimation, but...
Let's assume your APR is 19.9%. Convert that to a decimal, you get 0.199.
Divide this by 365 to get daily interest = 0.000545
Multiply this by the number of days between your statement date and when you paid it off - I'm assuming that's 6 (31 - 25): 0.00327
What I don't know is how much your balance was when you paid it off!

Multiply 0.00327 by that balance to get your answer.

E.g. if the balance you paid off was £4,000, then multiply 4000 x 0.00327 = £13.08 interest (roughly).

That's a good sum to know. Cheers for that!

nzseries1

thriftymomma wrote: »

That's a good sum to know. Cheers for that!

I just hope it's right :-D