possibly stupid questions about aqua start card

me123456789

Its my first credit card-it's supposed to be no interest on purchases if you pay it off on time, in full,it says it's 59 percent on cash.Well I just got my first statement and I owe 100,30 of that was cash out the machine and the statement date is the 2nd of may but the payment due date is the 20th of may.It has taken 62p off in interest-it also says estimated interest 4 pounds something-what is this? I'm not supposed to pay it off till the 20th of may right,so why are they charging interest? and is the 62p a daily charge or something (cos I'm only 36p under my credit limit!) would the interest be for the cash? or could it be something to do with going up to my credit limit (not over) already earlier in the month and then paying it off? My credit limit is only £100-is that all I'm supposed to spend in the month? or does it not matter what I spend as long as I don't owe more than £100 at once? Credit cards are really confusing!

CKhalvashi

If you take cash, interest is payable immediately on the cash element.

£100 is all you can borrow at a time (if you spent £100 in a week, you can pay this weekly and spend £400 in a month)

Never use a card like this to withdraw cash, as it's expensive. My advice is to spend on the card and pay monthly the balance.

phild145

In answer to part of the question the £4 something in estimated interest is the amount of interest that could be payable if you do not pay the full amount off by the due date. The more you pay off the less the interest would be

me123456789

does anyone know what the 62p is? It isn't the right amount if it was for the cash unless their taking it off weekly or something-I'm a little worried as I can't make a payment for over a week and I don't want them to take another 62p in the meantime and put me over the credit limit

ViolaLass

Interest is usually charged on cash withdrawals straight away so I would guess that that's what the 62p is.

molerat

That works out at around 15 days interest on £30, does that sound right - 15 days from withdrawal date to statement date ? Does it also show the £3 cash advance fee ? There will be more interest added on the next statement at around 4p per day from this statement date until you pay the cash advance off.

me123456789

yes,that sounds about right-so they won't actually put anything else through until the next statement? I just really don't want to go over the credit limit

ViolaLass

Paying it off would solve the problem. Are you not planning to do that?

me123456789

yes,I'm planning to pay it off in full but I can't do it for over a week

SeduLOUs

If you pay in full before the due date you will be fine.

There will be a little bit more interest to come (between the statement date and the date you pay) but it will be applied when the next statement is produced - bear that in mind and don't spend too close to your limit next month to leave room for it.