Barclaycard Interest

JDC14

I've got a Barclaycard Initial Visa, which I know isn't great but it's my first card so it's cool.

Anyways, I paid off my first months bill and have used it again since, however I was under the impression I wouldn't pay any interest if the card is paid off in full each month, which after 1 month it has been and my next payment isn't due until next month.

However my online account says I've been charged an Interest on my cash balance (2.207%) which is only £1 but I don't understand why I've been charged that.

It also says Estimated Interest Next Month of £1.33.

Not huge amounts I know - but can anyone shed any light on why I'm being charged these? I wasn't expecting any interest payments (bar the £2.50 I paid taking out cash in an emergency)

Nuclear_Themes

CC101 - Cash advances are charged interest regardless of whether paid in full.

wiseshark

JDC14 wrote: »

I've got a Barclaycard Initial Visa, which I know isn't great but it's my first card so it's cool.

Anyways, I paid off my first months bill and have used it again since, however I was under the impression I wouldn't pay any interest if the card is paid off in full each month, which after 1 month it has been and my next payment isn't due until next month.

However my online account says I've been charged an Interest on my cash balance (2.207%) which is only £1 but I don't understand why I've been charged that.

It also says Estimated Interest Next Month of £1.33.

Not huge amounts I know - but can anyone shed any light on why I'm being charged these? I wasn't expecting any interest payments (bar the £2.50 I paid taking out cash in an emergency)

Cash advances charge interest daily, the moment you withdraw the money. The sooner you repay the advance, the less interest you will pay.

You will continue to be charged interest until the cash advance is repaid in full.

Along with the fee, withdrawing money on a credit card is an expensive way of borrowing. Withdraw cash only in dire emergencies.;)

CLAPTON

as said cash has interest charge from the day you withdraw it
as well as being expensive it will, if used regularly, adversely affect your credit rating

'estimated interest' is usually an estimate based on you only paying the minimum necesssary rather than the whole balance

JDC14

You know what - I've read that so many times and it made absolutely no sense.

Sadly, it now has something to apply to. Fortunately, it was only a small amount. Thanks guys.

CLAPTON

JDC14 wrote: »

You know what - I've read that so many times and it made absolutely no sense.

Sadly, it now has something to apply to. Fortunately, it was only a small amount. Thanks guys.

what makes no sense?