Halifax Clarity interest question

gt94sss2

Hi,

Can anyone tell me how interest on a Halifax Clarity Card is calculated?

I'm just wondering what in the following would generate an interest charge according to the interest charging information here

Date Date entered Description Amount
19/09/2012 19/09/2012 INTEREST 0.11
16/09/2012 17/09/2012 PAYMENT REC'D - THANK YOU -240
16/09/2012 17/09/2012 OVERSEAS CASH ADVANCE 237.93
09/09/2012 11/09/2012 STORE TRANSACTION 112.18
01/09/2012 03/09/2012 PAYMENT REC'D - THANK YOU -162
01/09/2012 03/09/2012 OVERSEAS CASH ADVANCE 161.84

Thanks
Sunil

[Deleted User]

The cash advance. Interest is charged from day 1.

lisyloo

it's all there in your link

The interest free period applies only to purchases if you pay your balance in full and on time each month. See section 3.5 of the terms and conditions for full details.
There's no interest free period on cash advances, balance transfers or cheques.

A lot of us pay cash advances off very quickly for this reason.

gt94sss2

I also transfer funds to the Halfax account by Faster Payment immediately as the transactions above show.

So interest is charged from day 1, not the day the transaction is entered on to the statement and as Faster Payments don't credit the account immediately (i.e. date entered) with the Halifax, that generates the charge..

That's helpful to know - I can use a card which credits faster payments immediately unlike the Halifax to avoid this.

Regards
Sunil

lisyloo

Looks like 1 days interest to me if you calculate it.
Does your other card have 0% commission.
If the other card has commission then it'll almost certainly be more than 1 days interest which is 12.9%/365 which is 0.035%.
Commission is around 3% normally.
The charge you have is tiny.

gt94sss2

lisyloo wrote: »

Looks like 1 days interest to me if you calculate it.
Does your other card have 0% commission.
If the other card has commission then it'll almost certainly be more than 1 days interest which is 12.9%/365 which is 0.035%.
Commission is around 3% normally.
The charge you have is tiny.

Yes, I have several 0% f/x commission cards.

Metro Bank credits faster payments the same day. I haven't yet used my Santander Zero card at an ATM overseas so I don't know yet how quickly they credit faster payments.

The charge is tiny but a) if its avoidable simply by using a different card so much the better and b) I will have to do similar transactions several times a month for the next few years...

Regards
Sunil

lisyloo

Yep agreed, if you have to do it regularly then it's best to avoid any charges.

Be aware of DCC (dynamic currency conversion).
I missed one this year in Thailand because the local currency was in large print and the converted figure in small print, so you need to be eagle eyed (paper receipt was brought to the table so it wasn't a terminal).
IME this is about 4% for conversion.