Barclaycard - Can anyone help with this wording?

Eager_Elephant

Hi

Did a quick search and could not see that anyone else has mentioned this.

I noticed on my most recent statement that my estimated interest has gone up since last month. I do not spend on this card and my interest is still the same as I rejected an interest rate rise.

So I have checked the wording on the back of the statement and noticed that since last month it has changed.

Under 'Interest Charging Information' it now has an extra sentence which says:

If your account is not fully cleared, interest will be charged on the total value of the statement and not just on the outstanding balance.

I don't fully understand this and I have looked online but I cannot find the terms and conditions which might explain it.

I am assuming that this is the reason that my estimated interest has gone up by over £25.

Please could anyone explain this to me?

Thanks for your help

EE

Degenerate

I think it's just a clarification of existing policy that won't affect you if you're carrying a balance month to month.

It's about the standard interest-free period on purchases that credit cards have. A lot of people don't realise that it only applies if you pay the full balance - even a penny less and you are charged interest on everything from the moment of purchase. So if you buy something for £1000 at the start of the statement period, recieve the statement and pay off £999 by the due date, you would pay 50 days or so interest on £1000 when if you'd paid the extra quid it would be none.

Consumerist

Degenerate wrote: »

I think it's just a clarification of existing policy that won't affect you if you're carrying a balance month to month.

If you have rejected new terms and are still bound by the old terms until the debt is repaid then the interest rate should not have changed for you. The estimated interest is normally based on making only the minimum repayment on the due date providing nothing else changes. The amount of interest can, however, vary slightly from month to month depending on how many days have elapsed since the previous statement.

If the amount of the estimated interest for next month is significantly more than you have been paying in recent months then it would be wise to make enquiries with the bank in case you are unaware of any requirements imposed while you are paying off the debt at the old rate.

Eager_Elephant

Thanks for your help.

I think I will ring up once the interest has been applied as I can just see them saying that it is only estimated so no guarantee what amount it will be.

EE

danouk

OP, if you're carrying a balance then this does not affect you in any way. As Degenerate says, it is clarification that if you don't clear the full statement amount by the due date then you will be charged interest on the full amount.

It does not affect calculation of estimated interest on an account where you are paying down a balance.