Interest Charges

rh22uk

Hi,

I was wondering if someone could clear this up for me. To avoid interest charges you need to clear you balance every month in full.

I have been doing this. But I am still getting charged interest.

Therefore perhaps I misinterpreted this. I have been clearing the months balance. e.g. if I sent £300 in May I would pay the £300 for that month by automatic direct debit. However this does not set the balance to Zero as when I pay the bill I have already done spending under Junes statement.

To avoid interest do I have to clear everything off to Zero not just the previous month??

molerat

You need to clear the balance on the statement in full every month. You will incur interest on cash withdrawals and may incur interest on some purchases that could be considered cash transactions such as gambling.

McKneff

If you pay what the amount of the balance is on the statement everything should be clear and no interest added.

Have you taken any cash out on the card, because this can leave a trailing balance of interest from when the statement is created to a payment.

camuk81

Who is the card with?

I only ask as a card I had showed something that looked like interest but it was their form of PPI

rh22uk

The card is with santander.(santander zero) I did place an online bet so perhaps this is what it is? Thanks

jonesMUFCforever

pp87 wrote: »

The card is with santander.(santander zero) I did place an online bet so perhaps this is what it is? Thanks

An online bet will attract a fee (3%? with probably £3 min) so if you only paid back the bet the £3 will have attracted interest on top of the interest until the original bet was repaid.