citibank

renee_b

What a load of schisters. Have been paying my citibank cr card off each month over and obove the min pay but the interest keeps increasing. I have rang them several times only to be told a load of garbage about my payment differing each month. I cannot understand why the balance is reducing but the interest is increasing. I have now payed off the balance or so I thought only to receive another statement saying I owe £34.04 interest. I rang them again (only 24 mins to get through time) to enquire why I was being charged interest on a nil balance. Apparently the interest was charged from the date the statement was printed not the date the payment was due. Then guess what I was told I now owed £34.05 the 1p interest was interest on the interest from the state date 03/11/09 to today 07/11/09 even though the pay is not due until 30/11/09.

td_007

renee_b wrote: »

Then guess what I was told I now owed £34.05 the 1p interest was interest on the interest from the state date 03/11/09 to today 07/11/09 even though the pay is not due until 30/11/09.

Unfortunately that is way the interest is calculated. This means if you have been in a situation where interest is calculated on a daily basis, then you will have one more payment to make to clear your card even if you pay the entire amount mentioned on you statement. This is what is called trailing interest - The best way to beat this is not just to pay the amount mentioned on the statement but also the interest leading upto the day you make the payment.

Moggles_2

Welcome to MSE!

This applies to all credit cards, not just Citi.

If your payment falls short of the statement balance, it's treated as a partial payment. As a result, the interest-free grace period normally allowed on purchases is cancelled on all transactions that month, so interest on the whole balance, calculated daily, is being added to the account.

I would stop using the card, if you haven't already, and pay off the full balance including any transactions posted to your account since the statement date.

That said, if you had to wait 24 minutes to speak to someone on the phone, that's appalling service. If good telephone back-up is important to you, I'd consider switching to another card. First Direct and Royal Bank of Scotland are often recommended here