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Tesco CC Interest Calculation?

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Hi folks,

I've had interest charged on my Tesco credit card and wanted help to calculate the interest (I want to know how they have done it!). I have called 3 times to request a breakdown of how exactly they have calculated the interest but each time, they send a generic letter explaining the terms. The letter has no numbers on it! Ridiculous!

Here are the details,

October Statement - £1095.62
Min. Balance by 31/10/13
Payments made 14/10 £441.08 and 01/11 £654.56
I understand that it is this payment on the 01/11 that has caused all this interest to be accrued?!

November Statement - £1907.43 (inc. interest of £27.54)
Min. Balance by 01/12/13
Payments made 15/11 £880.31, 18/11 £13.77 and 26/11 £13.77

December Statement - £2176.78 (inc. interest of £7.29)
Min. Balance by 31/12/13
Cleared 12/12/13

It states at the bottom of each statement that the "monthly interest rate" is 1.313%.

Any help is appreciated to understand how the calculations have been made. I've read 'theukcardassociation.org.uk' site, but can't seem to get an exact amount!!

Thanks.

Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
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    edited 13 December 2013 at 12:17AM
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    ilkz wrote: »
    October Statement - £1095.62
    Min. Balance by 31/10/13
    Min payment?
    Payments made 14/10 £441.08 and 01/11 £654.56
    I understand that it is this payment on the 01/11 that has caused all this interest to be accrued?!
    Ignoring the min payment, as you haven't paid the balance in full the interest was charged on on all spending on a daily basis until the statement, then on ~£1095 until £441 was credited, then on ~£654 until the second payment was credited. Plus on all new spending since the day of each transaction.
    Etc.

    Impossible to check the figures without knowing the exact dates of the statement and all debits/credits. And it's unreasonable to ask the company for the full breakdown unless you don't make any purchases during the billing month.

    Interest is calculated on a daily basis, daily interest is ~0.044%
  • ilkz
    ilkz Posts: 19 Forumite
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    Thanks for the reply Grumbler. Statements are emailed on 11th of each month.

    October min. payment - £25.00
    November min. payment - £45.54
    December min. payment - £28.29

    Do you mean after we made the payment of £441.08 in November for October statement, that interest was thereafter charged on the remaining £654.56 plus any other spending on the card each day up until 01/11/13?
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
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    it's worked out on the DAILY balance
    so interest is
    = daily balance x daily interest rate summed over each day

    so it depends upon which day you spend money and which dat=y you make repayments
  • grumbler
    grumbler Posts: 58,629 Forumite
    Name Dropper First Post Photogenic First Anniversary
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    ilkz wrote: »
    Thanks for the reply Grumbler. Statements are emailed on 11th of each month.

    October min. payment - £25.00
    November min. payment - £45.54
    December min. payment - £28.29
    They have almost negligibly small effect on the total interest you pay. £45*1.3%=~50p
    Do you mean after we made the payment of £441.08 in November for October statement, that interest was thereafter charged on the remaining £654.56 plus any other spending on the card each day up until 01/11/13?
    Yes, and then on the remaining balance and new spending after 01/11.
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