Pay off my NW card monthly but been charged interest.

withnell

The amount is rather high, suggesting you missed your payment date, and have been charged a late payment fee and interest on your account balance

TFD_2

jonesMUFCforever wrote: »

But if money has been taken out on the card it is not classed as a purchase.

I'm fully aware of that. I'm just saying that the amount of interest charged is far higher than it should be for a cash withdrawl.

jonesMUFCforever

TFD wrote: »

I'm fully aware of that. I'm just saying that the amount of interest charged is far higher than it should be for a cash withdrawl.

Most cards would have charged a fee for a cash withdrawal and then interest at around 30%.
I don't know how Nat West work out their interest charge - whether they charge interest on the whole amount outstanding (which we don't know how much as he has not said what the balance was) or whether they charge high interst on just the cash advance.

TFD_2

jonesMUFCforever wrote: »

Most cards would have charged a fee for a cash withdrawal and then interest at around 30%.
I don't know how Nat West work out their interest charge - whether they charge interest on the whole amount outstanding (which we don't know how much as he has not said what the balance was) or whether they charge high interst on just the cash advance.

The higher interest is charged only on the cash element.

30% APR is still 2 point something percent per month - so on £160 of cash would be circa £3-4 not £30-40.

jonesMUFCforever

So until we know how much OP had on that statement we will not be any the wiser.

TFD_2

jonesMUFCforever wrote: »

So until we know how much OP had on that statement we will not be any the wiser.

but I don't see why that should make any difference!

They paid off the full statement balance which entitles them to interest free on the purchases.

The only interest element will be on the cash withdrawl, but as that's not at 400%+APR, it doesn't explain the high interest charge.

Bored_Housewife

I will wait for the statement to arrive in the post and have a look at that.

The outstanding balance for this month was 1900.78. There was no cash withdrawals. August was 755.00. July was 3028.40 that bill was paid in full three days before the statement was made up, with a slight overpayment for any interest that may have been added. The card was 10.88 in the black on statement date.

The full amount will be paid off on 28 October.

Usually on my statement (online and paper) the interest is broken down into two amounts, this could be as little as 2.50 (which is the interest for cash withdrawal) and 0.03 (which is the interest added for the dates between 24 (s.ment date) and 28 (payment date). This time it is shown as one amount 34.67.

I will wait for the paper statement and then write to Natwest,.

Thanks for the replies.

ACG

Your right, - sorry i jumped the gun bit and didnt read the whole post.

Providing the balance was paid in full before the due date on every occasion then i dont think it should be there, but in order to know for definate i would need to see July, August and Septembers statements. If you struggle to get an answer, feel free to block everything personal out and PM me them. Id be happy to take a look over. It sounds like you might not have cleared your balance in full the month before withdrawing the cash.

gazelle8760

The only and best way to avoid any confusions, is to set up a full payment DD, which will go out of your account some 25 days or so after The Statement is produced, that way it clears the balance in full, and avoids the need to play guessing games as to when it is due, and when to pay it.

Why would anyone want to clear The Statement three days before the actual bill is produced? This negates the whole idea of a Credit Card, why give the bank any more interest on your money than need be, if your in a fortunate position to be able to pay your Statements off before you even get them, then perhaps do away with The Credit Card and use The Debit Card instead, that way you avoid interest full-stop.

Without seeing Statements, it's difficult to go on hearsy alone, but it seems taking the cash off the card, and paying the account in the manner described may have built up to the combination of Interest your seeing today, but as this is only my opinion, and having not seen The Bills to work it out myself, then perhaps Natwest can shed more light on it for you, either way, it seems a very odd way to go about paying for your balance, some how cart before horse springs to mind.

NickX

gazelle8760 wrote: »

if your in a fortunate position to be able to pay your Statements off before you even get them, then perhaps do away with The Credit Card and use The Debit Card instead, that way you avoid interest full-stop.

While I understand that you are suggesting that if you can pay straight away you could simply use a Debit Card, people should bear in mind that their protection (in particular Section 75 of the Consumer Credit Act) is reduced on a Debit Card.

My opinion is that you are always best to use a Credit Card but just don't pay interest by either paying in full or using a promotional deal.