Tesco Clubcard Credit Card Interest

Becles

I have a Tesco credit card that I normally pay off in full each month. On May's statement I misread the balance and £43 was carried over as the starting balance on June's statement.

Due a combination being away on holiday and thinking I'd paid it off in full, the minimum payment of £5 was collected on June's statement due date and no further payment was made by me.

I've had July's statement today and I've been charged £27 interest. I rang and queried, and the man said it's because I didn't pay off all of the £43 before the due date last month, so I've been charged interest on my purchases this month. This has been an expensive month as I paid my car insurance and bought some furniture.

Is this the normal way to calculate interest? I would have thought I should have just been charged interest on the £38 that was outstanding from the previous statement?

I intend clearing the whole balance before the due date this month to avoid further interest charges.

dfh

Unfortunately,if you don't pay off your balance in full,interest is calculated on the entire amount.

Moggles_2

Yes. Having made the minimum or a partial payment the previous month, residual interest (or trailing interest as it's sometimes known) would accrue on a daily basis from the date of your last statement to the day the funds are credited to your account.

If you were to settle the statement balance in full for two consecutive months, you would have x days interest-free on purchases once again.

This applies to all credit cards, not just the Tesco credit card

CLAPTON

the way of looking at it is like this

you pay interest calculated on the daily balance from the time you spend on the card until you actually pay it off.

however as a special condition if and only if you pay in FULL then they wipe the interest off.
that's how it works

in fact on your June statement there would have been interest due as you didn't pay in full the previous month (calculated as ablove).

also of course as you didn't pay the June statement in full there would be the interest of £27

and in fact you will get a small interest charge in August because interest will be accrued from the july statement date to when you actually paid it off.

interest only stops when you pay two consecutive balances in full.

Becles

Thanks. Will have to take more care in future. Bit of an expensive mistake to make