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How do credit cards get away with charging you interest on the full amount borrowed?
Gibbon
Posts: 1 Newbie
in Credit cards
Am I right in thinking that the only reason that credit card companies charge you interest on the full amount you borrowed is that it wouldnt be worth their while to let you borrow money if they only charged you interest on what you actually owed at the end of the month?????
Banks manage to only charge you interest on the amount you have left to pay at the end of the term surely.
Does anyone else think that credit card companies have a bit of a cheek?
And can anyone point me in the direction of a credit card that DOESNT charge you interest on the full amount at the end of the month, only on what you have left to pay up?
Regards
Banks manage to only charge you interest on the amount you have left to pay at the end of the term surely.
Does anyone else think that credit card companies have a bit of a cheek?
And can anyone point me in the direction of a credit card that DOESNT charge you interest on the full amount at the end of the month, only on what you have left to pay up?
Regards
0
Comments
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Banks, with their overdrafts, charge interest each day on that days closing balance.
Credit cards also charge interest each day on that days closing balance.
The difference is that if you pay your credit card bill (in full, and have made no cash transactions) on time the credit card companies waive the interest charge (with one or two exceptions, ie LTSB Advance).
So they're actually doing the customer a favour...wouldn't you say? You should be pleased, not angry!0 -
I don't think you really understand the banking business, do you ?0
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No, they are letting me buy stuff and pay it off upto 55 days later and charge no interest, so the money I was going to use to buy that stuff is gaining interest elsewhere. Then they also give me cashback for using them. Bonus!Does anyone else think that credit card companies have a bit of a cheek?0 -
Because you actually borrowed the full amount!This is everybody's fault but mine.0
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No, they are letting me buy stuff and pay it off upto 55 days later and charge no interest, so the money I was going to use to buy that stuff is gaining interest elsewhere. Then they also give me cashback for using them. Bonus!
Snap.
I don't pay a penny in interest and charges, and estimate I'm making between £250 and £325 per annum on cashback and interest on the free credit I'm getting.
Long live credit cards and very splendid banks who provide them - and the even more splendid people who pay out shedloads by running them in debit and thus helping to provide them free to the likes of me
Optimists see a glass half full
Pessimists see a glass half empty
Engineers just see a glass twice the size it needed to be0
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