Charged interest after paying off all purchases

rm19

I have a Virgin CC that I got for a money transfer to my bank account (0% for 36 months). After the money transfer, I took the balance plus fees, divided by 36 and rounded up to the nearest £10 and set up a direct debit to pay that amount each month, which ensures my money transfer is paid off with a 2 month buffer.

Over the last couple of months, I've used it for some purchases. When I get my statement, I take all the purchases from the month and pay that off on top of the DD to pay off the money transfer.

However, when I got this month's statement, I had been charged a small, yet non-zero, amount of interest. Surely if I pay my purchases off in full, I should pay no interest? Especially given that my money transfer is still well within its 0% interest period.

Can anyone shed some light on this? My next payment is due in a few days and I'd ideally like to make sure I'm not charged interest again. Thanks!

YorkshireBoy

You only get "up to xx days interest free" on purchases if you've paid your last two statement balances in full...and you haven't.


With the upcoming changes at Nationwide excepted, it's standard practice on all credit cards and is explained in your T&Cs.

rm19

YorkshireBoy wrote: »

You only get "up to xx days interest free" on purchases if you've paid your last two statement balances in full...and you haven't.


With the upcoming changes at Nationwide excepted, it's standard practice on all credit cards and is explained in your T&Cs.

Thanks for the clarification. So "balances in full" would include my money transfer too?

I think I'll just pay off all purchases over the next couple of statements and not use it for purchases from now on.

chattychappy

rm19 wrote: »

Thanks for the clarification. So "balances in full" would include my money transfer too?

I think I'll just pay off all purchases over the next couple of statements and not use it for purchases from now on.

Yes. If you do need to use it for purchases, send a payment to cover these as soon as the statement is generated*.

(* typically payments are applied to statement transactions first - so you need to wait for a statement to be generated showing your purchases before a payment can be applied to them. Somebody posted that this doesn't apply to MBNA cards, though it applies to mine. If it doesn't apply then you could send your payment even earlier.)

CLAPTON

rm19 wrote: »

Thanks for the clarification. So "balances in full" would include my money transfer too?

I think I'll just pay off all purchases over the next couple of statements and not use it for purchases from now on.

keep it simple
have two cards
one for the balance transfer
and another for spending which you pay in full each month