Penalised for extra payments?

PandaPaws_3

I'm a bit confused , help needed please?!

I have been paying small amounts off an MBNA credit card to try and get it cleared a bit quicker. However, I see that even though the balance has only gone down, my minimum payment and my interest has actually INCREASED this month from last month!

My statement date is the 10th. I made extra payments between the 11th and 29th last month. Should I have kept the smaller payments to pay at a different time of month, when interest was calculated..??? What is going on?

All that extra effort feels like it was for nothing :mad:

izools

Have they increased your APR?

Check the APR on this statement and the last statement.

You may have been RATE-JACKED (this is where the credit card provider raises the APR of the account if they don't feel you are making them enough money - all of a sudden trying to clear the balance at a faster pace might have caused them to do this - so that they still make as much money from you in interest).

Your credit agreement will say the APR is variable, so unfortunately, yes they can do this.

But let's see if that's what has actually happened first

PandaPaws_3

Hi, thanks very much for your response.

I've been reading about rate-jacking on here, and it was the first thing I looked at, but my online account still states the same interest rate - 2.59% - unless they have put it up and not changed the details on my online account yet.. Suspect this may involve another long and expensive phone call to MBNA to find out whats going on.

It's only a small increase, but I can't understand why there would be ANY increase.

heloid

Interest is calculated daily so you better off paying as soon as possible.

The only reasons your interest charges would go up are:
1. You balance has gone up (not in your case)
2. As above, your APR has gone up

PandaPaws_3

Interest is always calculated daily on every credit card?

izools

Most certainly is

PandaPaws_3

Then this makes no sense! Thanks for your help, will have to get in touch with MBNA and ask some questions!

PandaPaws_3

Hi, I've just called MBNA and the answer is that this months statement was calculated based on a 32-day cycle as opposed to the last couple of previous months both being based on 29-day cycles?! So the extra £15 is because of the extra 3 days. So I guess its just an unlucky month!

Moggles_2

PandaPaws wrote: »

I've just called MBNA and the answer is that this months statement was calculated based on a 32-day cycle as opposed to the last couple of previous months both being based on 29-day cycles?! So the extra £15 is because of the extra 3 days. So I guess its just an unlucky month!

I was just about to post something to that effect, but you beat me to it.

Btw, for future reference, if you ring MBNA Card Services on 01244 673101, you'll avoid the perishing 0870 numbers

PandaPaws_3

Thanks Moggles, I'll remember that for next time (I'm sure there will be one!).

withnell

I ring 0800 917 44 66 for MBNA card services - number off the back of my card!