Halifax card paid off - still charged interest

YorkshireBoy

Gromitt wrote: »

I'd guess that the £0.02 is the amount of interest expected if you didn't manage to pay off the entire £1 in full.

Exactly. Estimated interest is based on a couple of key assumptions (which are explained on the statement):

1. You make no further transactions, and
2. You make only the minimum payment on the due date.

...so pay £1 on the payment due date and there will be a 2p interest charge on the next statement a few days later.

ericpode

Well the 1 pound is paid now.

As for small balances, some cards have a minimum of £1 interest, so even if 2p interest is incurred, £1 will be the minimum added in interest.

It'll be pretty annoying if she ends up with calculated interest of 0.1pence (or whatever) that gets rounded up to 1 pound!