Paid Credit Cards Off But....

Simon80_2

Hi All,

I recently paid 2 credit cards off (yippee) and told them over the phone to close the accounts, which was done and have letters to prove... My question is though, once I paid the full amounts I had £0 on the credit cards, but since paying they have produced another statement, and one of them says I owe £90 (approx) interest I take it and the other £30 approx....

Now is this correct, I mean I paid off both balance's to leave £0 owed, now another statement as been done for May meaning I now owe again? I have dates the accounts were closed, which was well before the statement for May was produced..

I hope all the above makes sense, I really hope someone can help me with this one..

Thanks
Simon

pre123

Simon80 wrote: »

Hi All,

I recently paid 2 credit cards off (yippee) and told them over the phone to close the accounts, which was done and have letters to prove... My question is though, once I paid the full amounts I had £0 on the credit cards, but since paying they have produced another statement, and one of them says I owe £90 (approx) interest I take it and the other £30 approx....

Now is this correct, I mean I paid off both balance's to leave £0 owed, now another statement as been done for May meaning I now owe again? I have dates the accounts were closed, which was well before the statement for May was produced..

I hope all the above makes sense, I really hope someone can help me with this one..

Thanks
Simon

more interest accrues from the time of the statement until the date you actually paid.
This is called trailing interest and will show on the next statement
You need to pay in full for two consecutive statements to stop further interest accrueing
this is how most work

easy example:
statement is on 1st of may
you pay on the 5th of may
interest accures from 1,2,3,4 of may so will show on your next statement

Simon80_2

Hi thanks for your reply,

I even had Mint sending me a cheque the other day for £32 due to me paying too much, yet now I owe them £30 then lol

So if I pay the £90 and £30 owe I wont get anymore statements etc and owe them? I just thought once the balance was paid and said £0 owed that was it surely, but I do understand what you mean.....

Cheers
Simon

Stinkybell

they're probably trailing interest - interest is added to your account the statement after as it takes into account when in the billing period you paid off the card. Provided that you pay both these amounts in full this month, your accounts will be closed and you can live happily ever after. Don't try to avoid paying as it will screw up your credit history. Bit of a pain in the bum, but it's just another way they make money out of you!

Simon80_2

So me ringing them up wont make any difference then I take it as thats what I was going to do...

Cheers
Simon

pre123

Simon80 wrote: »

So me ringing them up wont make any difference then I take it as thats what I was going to do...

Cheers
Simon

i wont waste your time on calling them, they would only refer you to the t+c, just pay in full and let the account close fully.. trailing interest is a bit of a con but if they werent charging it they would be giving you an interest free period:p

Simon80_2

pre123 wrote: »

i wont waste your time on calling them, they would only refer you to the t+c, just pay in full and let the account close fully.. trailing interest is a bit of a con but if they werent charging it they would be giving you an interest free period:p

So, say the trailing interest was produced on my May statement (25rd May(example) ) and I make the trailing interest payment on the 1st June, there isnt going to be another statement next month saying I owe another lot of trailing interest for the day 25th May to the 1st June when I paid it is there?

Sorry for the questions.

Cheers.

pre123

not 100%, but 99.99% (lol) sure. i would pay the full amount this month, and check your statement next month and there shouldnt be any interest as you have clear the balance from previous statement and now this 1 making up the 2 full balance in a row

Simon80_2

pre123 wrote: »

not 100%, but 99.99% (lol) sure. i would pay the full amount this month, and check your statement next month and there shouldnt be any interest as you have clear the balance from previous statement and now this 1 making up the 2 full balance in a row

lol, I will make the payment now then, I wont be applying for another credit card again thank god lol

Cheers