Estimated Interest

gemmag1981

Hi

I recently had a credit card bill with a new balance of approx, £1400. The statement showed that the 'estimated interest' for that month was £15. I paid the full amount before the due date, but was still charged interest, which was in excess of the estimated amount at £55.

Am I missing something here or is this correct?

Hope you can help.

Thanks

opinions4u

I would hazard a guess that your introductory deal ended after the statement was issued and before you paid.

Paul_Herring

gemmag1981 wrote: »

Hi

I recently had a credit card bill with a new balance of approx, £1400. The statement showed that the 'estimated interest' for that month was £15. I paid the full amount before the due date, but was still charged interest, which was in excess of the estimated amount at £55.

Am I missing something here or is this correct?

Hope you can help.

Thanks

Likely correct, presuming you'd carried over a balance on the previous statement period; the £15 will be interest for the balance between
a) the date the statement being produced, and
b) the date you paid the 'full' balance.

Which is likely to have been a non-zero number of days.

A subsequent full payment on the next statement should not result in a similar situation.

cse

Estimated interest is calculated based on a set of assumptions:
1) you pay the minimum payment on your payment due date
2) you make no other transactions
3) interest is charged at the rate that is in effect when the statement is produced

Since you paid more than your minimium, before the payment due date, the only explanation that makes sense for your actual interest to be higher than the estimate is if your interest rate increased after the statement was produced. As stated above, the most likely explanation is that an introductory offer came to an end, probably a day or two after the statement was produced