Charges

ker-ching

Hi, I have a cashback credit card and pay off my balance every month. On my January balance of £552.49 I made a mistake and left an outstanding balance of £0.69. On my February statement I received a charge of £4.36. When I phoned up they said as its only a partial payment, I owe the interest. Not on the £0.69 but on the original £552.49, even though my payment was within the interest free period. This sounds a bit fishy to me! Even though it's only £4.36 it's about principles!

StuC75

Sounds correct, interest is charged if the full statement balance is not cleared in time - all statements state that. Its a case of all or nothing unfortunately.

grumbler

Be prepared to be charged interest the next month again even if you pay the balanced in full.

InsideInsurance

ker-ching wrote: »

When I phoned up they said as its only a partial payment, I owe the interest. Not on the £0.69 but on the original £552.49, even though my payment was within the interest free period.

Almost all "interest free" offers are exactly the same and not just credit cards. It is only interest free if it is paid in full prior to the end of the period. If you leave any balance unpaid then the interest free is effectively lost and interest applied from day 1.

The fact you paid off the majority will be factored in because for the last few days the interest would only be on the remaining balance but up until the point of payment it is on the full balance (or at least the balance each day assuming you were using it through out the period rather than just one transaction)

ker-ching

Cheers people.:beer:

YorkshireBoy

Direct debits don't forget the date, amount, etc.

Since you always pay in full, this may be worth considering?