BMI - MBNA credit card - interest!!!

toots666

Has anyone heard that a credit card still charges you interest even if you paid in full? They said they dont charge interest only if you paid in full 2 months in a roll.
So for instance my balance in August was say £30, then i paid it off, before the next bill comes in, i use the card again, I get charged interest eventhough in sept bill too?!?!
That sounded wrong to me, but the dude on the phone said that was the case!!! does any other credit card do that?

andyuk101_2

All credit cards work in this way, its called trailing interest

opinions4u

Here is a link to a typical set of credit card T&Cs.

You will not pay interest on new purchases if:
• your previous statement was paid in full and on time; and
• you pay your current statement in full and on time.

It's triggered by not paying the card off in full.

If you always clear the balance in full (and avoid cash type transactions) you will not pay interest.

If, one month, you pay less than the full balance interest will be charged from the date of each transaction you've made.

Interest will continue to be charged until you clear the debt in full. And then you will have an interest charge on the previous balance from statement date to settlement date. No further interest is charged when the second consecutive statement balance has been paid in full.

chattychappy

Perhaps if the original post had less rant and more detail people here could check more carefully.

Agree, it sounds like trailing/residual interest.

[Deleted User]

toots666 wrote: »

That sounded wrong to me, but the dude on the phone said that was the case!!!

The dude on the phone knows what he's talking about. Learn from him.

bengal-stripe

Interest is calculated and added to the balance on the day the statement gets compiled.

Your payment arrives some two or three weeks later than the statement date. In the next statement you will be charged the interest due for those two or three weeks you had an outstanding balance.

It ain't over until the fat lady sings; interest ain't over until the balance got paid.

thenudeone

Every penny you spend on a credit card will be charged interest until it's paid off, regardless of what the statement dates are.

The statement only shows interest up to the date of the interest.
There will always be interest due on what you owe from the statement date until you finally pay it off.

The only exception is if you always pay off the statement in full (or do so for two months in a row if you weren't before).

This is the same for every credit card.