Credit Card - Interest

michthedolphin

Hi
Question regarding re-building credit rating...

My question is:
If direct debit setup at the lenders specified date - Every month, an instruction to "pay balance in full", would interest be charged?

Thanks

Eonel

No interest should be charged, unless you use the card for cash withdrawals or on-line gambling transactions.

Also be aware that if you are setting up a full direct debit on an account that was previously running a balance, then you could still have some trailling interest payments for the first couple of months that relate to the prior balance.

michthedolphin

Eonel wrote: »

No interest should be charged, unless you use the card for cash withdrawals or on-line gambling transactions.

Also be aware that if you are setting up a full direct debit on an account that was previously running a balance, then you could still have some trailling interest payments for the first couple of months that relate to the prior balance.

Thanks for the post!
It's a new card and direct debit was setup on £0 balance.

Hopefully no interest charge!
Cheers

chattychappy

Check that the DD was set up in time to take payment for the first statement. I don't use DDs, but many report this not being done in time so they start off with a late payment/fees etc. I think you have to do it before the statement is generated. Ie if the statement doesn't say that the DD will be taken, then it won't be.