Why interest charged when balance paid in full

advance

I have been charged Interest on my Asda Money Credit card the last two months even though my card is paid off in full each month by direct debit.

The interest is being charged at 2.078%

Does anyone know what this is a charge for?

[Deleted User]

Hi,

is you DD maybe getting paid too late, think you have to allow 3 working days for payment to arrive.

Fruit_and_Nut_Case

[Deleted User] wrote:

Hi,

is you DD maybe getting paid too late, think you have to allow 3 working days for payment to arrive.

If it's being paid by Direct Debit it is the responsibility of the CC provider to claim the money in time.

Possible reasons for interest:

• Trailing interest
• Interest on cash withdrawals
• Interest on gambling charges

CLAPTON

assuming you didn't used to pay in full then
you need to pay your balance in full for two consecutives months before interest stops as you are paying the trailing interest due from your previous habit

advance

It is a new card only four months old and the card has always been paid in full.

I did have a cash advance a couple of months ago which I only did the once as I was charged £5 so did think the interest that was on that statement might be for that as well as the £5. I didn't realise they charged so much so it was a one off.

That statement was paid in full but again I have an interest charge this month

CLAPTON

the figures always help but when you take out the cash advance the next statement will charge you interest up to the date of the statement

you then pay in full some time later

they will then charge you interest for the time between the statement date and the actual day you pay this will show on the next statement

[Deleted User]

Hi,

Fruit_and_Nut_Case wrote: »

If it's being paid by Direct Debit it is the responsibility of the CC provider to claim the money in time.

Possible reasons for interest:

• Trailing interest
• Interest on cash withdrawals
• Interest on gambling charges

yes, sorry, , was thinking when paying by debit card.

dalesrider

advance wrote: »

I did have a cash advance a couple of months ago which I only did the once as I was charged £5 so did think the interest that was on that statement might be for that as well as the £5. I didn't realise they charged so much so it was a one off.

That statement was paid in full but again I have an interest charge this month

You pay interest on cash from day one. So even if you pay the balance in full. The next month. You have interest to pay for the days upto being paid. You then have interest to pay on this.

Cash usually takes 3 months to clear the interest.