Credit card interest rip off

fezzalad

Does anyone know if it is standard practice for card companies to charge interest on the full statment balance if you do not pay it all off?

I just had this with Morgan Stanley, I paid £1050 off a balance of £1055 and got charged £20 interest on the full £1055 !!!! They say is is standard practice in the industry.

jamalfatty

If you dont pay it off in full, you are charged interest, calculated daily, on the balance outstanding each day for that statement period. So yes, £20 would be correct

CLAPTON

look at it this way:

a credit card is exactly that. a card on which you get credit and expect to pay interest.

a bit like a loan.. you borrow the money and pay interest on it.

how CC companies in some circumstances, as a special generous offer say that if and only if you repay the FULL amount each month they won't charge you any interest at all.

if e.g. you took out cash they will charge you from the day you take it out irrespective of whether you pay the full amount or not.

basically you have a choice.. use a debit card and never get charged interest or use a credit card and in some circumstances you can avoid paying interest.

look at it as a bonus to get an interest free period and not as a penalty to pay interest on money you have borrowed.

oscar52

It depends - on the card provider and the T&Cs of the card.

Every card (that i know) charges interest form the start with cash withdrawals or cc cheques. Balance transfers can differ between issuers. With purchases the norm is a maximum of 56 days interest free (with most but not all) to get the maximum you would have to spend the day after your statement was produced - ie statement prod 1/3 you spend on 2/3 beacuse you have 28 days before the next statement is produced (28/3) and them time after to pay that, interest doesnt usually acrue until 28 days after (26/4or there abouts)