will my balance ever be 0?

Nicky321

i owed £6288.71 on a credit card so i paid it.... a couple of days later i checked the balance it showed a balance of £6.05... so you guessed it, i paid it. Now a couple of days later i check the balance expecting it to be £0 and no.... its £0.01 so ive paid it...... surely it should be clear now shouldnt it?

nomoneytoday

If I owed £6.05 I would pay £6.50 or thereabouts.
The bank can then credit the minimal balance back to me at their cost when the account is closed.

Nicky321

if i have an outstanding balance i will pay just over, but if they credit it back to my credit card account, then they still have my money

humfer

God knows - normally when they give you a balance and a due by date, as long as you pay that same balance the debt should be cleared. The only thing I can think of is that maybe part of the balance was cash/etc by which they charge a slightly difference interest rate or treat it differently than normal spend

Astaroth

You pay interest on your interest on a daily basis but it is only added on a monthly basis. Therefore if you pay the balance off in full the interest between the statement being produced and the statement being paid off will be added at the next statement (assuming balances are outside the interest free period). This will continue going until the interest is too small to add on and you then get a 0 balance.

The other way to do it of cause is, knowing what your monthly interest rate is, pay off your statement plus the majority of the interest added on a monthly basis and so when the next statement is produced the interest will be instantly paid off by the over payment and you will probably be left with a small credit balance.

Nicky321

All sorted, they confirmed the balance is £0.0 and even offered to credit me the £6.09 if we kept the card... which we didnt.