Interest after paying my card off

james_dean1986

Before I go complaining to Halifax I wanted to check something as this is my first ever credit card.

I took out a Halifax Clarity card as suggested by MSE for overseas spending.

Did as suggested, used it to withdraw money while in Fuerteventura.

When my statement came through there was an interest charge of about £1.40. Thought this was strange as I was on the understanding you only get charged interest if you go over the due date, but paid the total bill anyway.

I have now had another statement come through, which shows the bill was cleared, but with same interest charges on again so I owe another £1.40

Seems odd to me, but is this normal?

Tixy

Yes, its normal

For an cash withdrawal you pay interest from the date of the transaction to the date you pay it off.
The last statement only included interest up to that date. The next statement includes interest from the previous statement date to the date you actually paid for it.

CLAPTON

james_dean1986 wrote: »

Before I go complaining to Halifax I wanted to check something as this is my first ever credit card.

I took out a Halifax Clarity card as suggested by MSE for overseas spending.

Did as suggested, used it to withdraw money while in Fuerteventura.

When my statement came through there was an interest charge of about £1.40. Thought this was strange as I was on the understanding you only get charged interest if you go over the due date, but paid the total bill anyway.

I have now had another statement come through, which shows the bill was cleared, but with same interest charges on again so I owe another £1.40

Seems odd to me, but is this normal?

there are no fees for cash withdrawal or foreign usage charge but you are charge interest from the day you withdraw to the day you PAY in full.

so on your statement you will be charged interest from the day you withdrew to the first STATEMENT date
then on the next statement you will be charged interest from the first statement date to the date your actually paid.


so best to pay off in full as soon as you get home and don't wait for the statements to arrive.

james_dean1986

So given that I only withdrew 200 euro on the card the whole time I was away, the exchange rate is now not working out too good with interest charges.
Shame!

CLAPTON

james_dean1986 wrote: »

So given that I only withdrew 200 euro on the card the whole time I was away, the exchange rate is now not working out too good with interest charges.
Shame!

depends upon what your alternatives were.

thebritishbloke

CLAPTON wrote: »

depends upon what your alternatives were.

Clarity's monthly interest rate is just over 1.019%, most debit cards will charge you ~3% for an international cash withdrawal. Presuming you paid it off in full on the statement date, you've saved money.