56 days, how does it work?

InsideInsurance

Mentox wrote: »

So it seems that they give me a statement and charge me a month later? :think:

Its normally 21 days later or so but yes thats exactly what it is.

They give you the statement, if you dont pay by DD you then normally have 28 days or so for cleared funds to be in the account (ie you need to pay a few days before the end date to allow clearing time) and if you do pay DD they take the payment 21-25 days or so afterwards automatically to save you having to do it.

So if you buy something on the day after they produce the statement it will then appear on the statement 28 days later. You then have 28 days to pay the statement hence "up to 56 days interest free" (28 + 28) - exact number of days vary by provider.

Mentox

dzug1 wrote: »

Yes precisely.

I'm failing to see a problem

Not really a problem just trying to understand the logic behind it so I can predict my finances a bit better.

InsideInsurance wrote: »

Its normally 21 days later or so but yes thats exactly what it is.

They give you the statement, if you dont pay by DD you then normally have 28 days or so for cleared funds to be in the account (ie you need to pay a few days before the end date to allow clearing time) and if you do pay DD they take the payment 21-25 days or so afterwards automatically to save you having to do it.

So if you buy something on the day after they produce the statement it will then appear on the statement 28 days later. You then have 28 days to pay the statement hence "up to 56 days interest free" (28 + 28) - exact number of days vary by provider.

Thank you so much InsideInsurance, this makes perfect sense and it is all clear now.

Herbalus

There is always time after a statement for you to pay it, because otherwise we'd all be complaining. Imagine if the CC company said "right, you've spent £1000 in the last month, and we want payment by 5pm this evening". That's why they give us a pre-determined amount of time, ~21-28 days or so, to pay.

Once they've given you a specified number of days to pay that £1000, it would be a bit unfair for them to say "hang on a minute, you've spent another £500 six days later, and we want that back with the £1000". Hence why they don't bill you that £500 until the following month.