Can they charge me interest even when I paid full statement balance on time?

andycorleone

Hi, I singed up to a Halifax Credit Card Last Year. They offered me 10 month free interest. My last 3 statements showed the following:

March:
closing Balance £4500
Next Month Estimate Interest: 0

(I made a minimum payment of £50)

April:
closing Balance £4450
Next Month Estimate Interest: £50


(I Pay the Full Balance of £4450)

May:
Closing Balance £50
Next month Estimate Interest £0.66


They Charge me this month about £45 interest. even when they received the payment on time.

I called them and they said that my free credit period (I suppost after 10 months) ended on march 29th.

Can they charge me interest in this case even when I paid my full statement closing balance on time?

Many Thanks

jimclark1967

Unfortunately yes - You need to clear the entire balance before the interest free period runs out, i.e. 29 March even if the statement date is different.

In this case you will have been charged interest from 30 March until the day you paid the balance.

JC

thriftymomma

Yes they can.

p00hsticks

Once they've started charging interest, you need to pay off the balance in full for two months in a row before it's cleared.

This is because in the first month (in your case, April) the interest shown is as at the time the statement was produced (the statement date). However, interest is being calculated daily, os by the time you actually make your payment, the balance will have increased from what is shown on the card. The second months statement will show this remaining intertest. If you then pay this off in full by the payment date then you will havesuccesfully cleared the balance and should get a zero bill the following month (assuming you don't spend any more on it of course).

andycorleone

p00hsticks wrote: »

Once they've started charging interest, you need to pay off the balance in full for two months in a row before it's cleared.

This is because in the first month (in your case, April) the interest shown is as at the time the statement was produced (the statement date). However, interest is being calculated daily, os by the time you actually make your payment, the balance will have increased from what is shown on the card. The second months statement will show this remaining intertest. If you then pay this off in full by the payment date then you will havesuccesfully cleared the balance and should get a zero bill the following month (assuming you don't spend any more on it of course).

Hi, Sorry Don't Get it. now I Paid my full balance and start using the Card Again. if I pay this statement of £50 in full, and next month let say the stament is £1500, are they going to charge me also interest in this amount? even if I pay from now every statment in full

Thanks

never-in-doubt

Have a look here - this can help work it out for you, just play around with the settings.....

http://www.whatsthecost.com/creditcard.aspx

CLAPTON

andycorleone wrote: »

Hi, Sorry Don't Get it. now I Paid my full balance and start using the Card Again. if I pay this statement of £50 in full, and next month let say the stament is £1500, are they going to charge me also interest in this amount? even if I pay from now every statment in full

Thanks

Once you have paid interest on your statement then you need to pay in full for two consecutive months before further (residual) interest stops. Thereafter as long as you pay in full every month then you pay no interest.