Credit card interest on zero balance??

leopold

CLAPTON wrote: »

As everyone has given you valuable (as you didn't know that) correct (as it's right) information about how interest is charged on the daily balance (very reasonable don't you think?) why don't you thank them then?

I've thanked everyone who was helpful.

leopold

Hominu wrote: »

Even thought every credit card works in exactly the same way.

You borrow the money, you pay interest on it until you've paid it back. Can't get any simpler than that. However, since banks are nice and generous, they'll not charge interest if you pay off your statement in full each and every month.

Yes, I get that. I'm not an imbecile, you don't need to patronise me!

Just in case you missed my previous post about the last time I paid off a credit card with a big debt that took months to clear, once I'd made that last payment, THERE WAS NO MORE INTEREST CHARGED AFTER THE BALANCE WAS CLEARED. Sorry to shout that bit, but I feel it's quite important to make it clear beyond any doubt. However, I will also add that this was back in 2001, so I dare say some things have changed since then. Maybe I should read all the T&Cs, but they're just so dull!

CLAPTON

leopold wrote: »

Yes, I get that. I'm not an imbecile, you don't need to patronise me!

Just in case you missed my previous post about the last time I paid off a credit card with a big debt that took months to clear, once I'd made that last payment, THERE WAS NO MORE INTEREST CHARGED AFTER THE BALANCE WAS CLEARED. Sorry to shout that bit, but I feel it's quite important to make it clear beyond any doubt. However, I will also add that this was back in 2001, so I dare say some things have changed since then. Maybe I should read all the T&Cs, but they're just so dull!

What you are saying is very surprising because CCs have always charged interest on the daily balance.

Of course there are exception where they cancel the interest for various reasons.

Maybe there were special circumstances or heaven forbid you may have mis-remembered all those years ago.

bengal-stripe

leopold wrote: »

So basically, what you're all saying is they're charging interest daily on outstanding balances, and that interest accrues from the statement date even if the final balance is paid off before the payment due date.

It's no wonder banks make so much money. I'm in the wrong job...

Look at it the other way round!

You have a savings account which pays you a certain interest rate, based on your daily balance. At the end of every month you get the amount of interest credited to your account.

Now (today, May 23rd) you decide to close the account and transfer the money out. The last time you were paid interest was on April 30th (paying you the interest up to that date). Would you want to be paid any interest for these last 23 days? Or would you be happy if you were told: "No interest will be paid, as the month was not completed!"

You wouldn't be happy about that, would you?

leopold

CLAPTON wrote: »

What you are saying is very surprising because CCs have always charged interest on the daily balance.

Of course there are exception where they cancel the interest for various reasons.

Maybe that was what happened on that occasion, then. I don't know for sure, I never thought to ask them at the time.