Calculating credit card interest

rich86

Hi, I'm having a bit of a problem calculating credit card interest rates from my statement and would appreciate if someone could quickly explain how I can work them out. I have tried using the calculator at whatsthecost.com but its still not clear (partially because I have a cash balance).

I have two statements one from 02/07/07 and one from 01/08/07 so I assume the interest for the card is calculated over 30 days for the latter statement?

The only transaction was the direct debit payment of 14 credited on the 27th July.

The opening balance was 486.52 and from previously asking the cash balance (which I think will be paid off last?) is £95.75.

Meaning that the balance would be as follows:
02 July

---

> 27th July

---

> 01 August

---

486.52 (95.75 of that at Cash rate)

---

|

---

472.52 (95.75 = cash)


Correct?

Now here is the bit that gets me:
Interest on Standard Balance (Cash) at 2.004% per month 1.87
Interest on Standard Balance (Purchases) at 1.671% per month 6.49

What is their banking month? 2.004% of 95.75 isn't 1.87 so I assume that its an average month averaged over the year but I can't seem to work it out, and the Purchases balance which will be 1.671%/month of 486.52-95.75 from 02 to 27th of July then will be less at 472.52-95.75 from 27th July to 1st August.

But it doesn't quite work that way as far as I can tell. Would really appreciate it if someone could write out the calculations or correct me on where I'm going wrong

Thanks in advance!
Rich

wannabedebtfree_2

I make 2.004% on £95.75 to be £1.91

The July purchase balance of £390.77 to be £6.52

And the August purchase balance of £376.77 to be £6.30

I'm not sure how they are working it out, but maybe purchases are charged interest from the day they are added to the statement - which would allow for the few pennies off in the calculations - or are they all added up at the end of each month, with interest being charged on the whole balance, maybe this is something you can check with your card provider.