Tesco Interest Rate Calculation?

VeryGrumpy

We try and pay off our credit card bill every month, we left £6 of a £1000ish bill unpaid and now I get an interest payment of £21 !
The interest rate is a heady 16.9% but I thought this would be 16.9% of £6.00, when I rang them they informed me it was on the entire bill rather than what's outstanding.
Is this right, can they do that?

YorkshireBoy

VeryGrumpy wrote: »

Is this right, can they do that?

Yes and yes!

Your purchases attract interest from day one. If, and only if, you repay in full by the due date, they waive this interest.

By the way, prepare yourself for some more residual interest next month. You'll see this residual interest until you've paid two consecutive statements in full, by their respective payment due dates.

VeryGrumpy

ooh #### and to think we only got it to harvest Club Card Points.
Thanks very much for your reply.

CLAPTON

VeryGrumpy wrote: »

ooh #### and to think we only got it to harvest Club Card Points.
Thanks very much for your reply.

for the avoidance of doubt; ALL credit cards work this way.

Fruit_and_Nut_Case

CLAPTON wrote: »

for the avoidance of doubt; ALL credit cards work this way.

If it makes the OP happier, you are not the first and you almost certainly won't be the last to fall in this trap.