Argos Card Interest question

Yarrum

I was wondering if someone could advise me about the interest I'm being charged on my Argos card account?

I didn't pay a few things on time so they went onto normal credit, my first question is, when this happens does the interest get put on the amount owed straight away? I thought it did.....
If yes, does anyone know why I'm being charged interest each month.

I always make more than the minimum payment a couple of days before the payment due date but each month I'm getting billed interest around £12-13 etc.

This has been happening for as long as I can remember.

Is this legit? Am I missing something?

Thanks in advance x

[Deleted User]

You're being charged interest because you only pay minimum. You need to clear opinion full each month for the interest to be waived.

Why would interest not be 'legit'?

PeacefulWaters

You'll get charged interest until you fully clear the balance.

Yarrum

I thought I was being charged twice. Perhaps I've not worded this correctly.

No worries.
Thanks

Yarrum

Lol I don't know much about these things.
I usually always save and buy things out right.

I also just read an article from MSE about Argos charging more than £11 interest a month and there was some issue with this and Argos were refunding people because it was too much.
I need to read into into it more.

Won't let me delete the thread ��

[Deleted User]

Interest is a function of balance, time and rate.

£11 is nothing to do with anything.

molerat

You will pay interest of around £2.50 per month per £100 outstanding. Leaving the payment until close to the due date allows even more interest to accrue to go on the next statement. How much is outstanding ? If you are only paying the minimum you are only decreasing the capital balance by 1% per month. For £400 outstanding you will pay £14, £10 interest and £4 capital so next month you will still owe £396 meaning a payment of £13.82, £9.86 interest and £3.96 off the balance leaving £392 outstanding. Can you now see why making minimum payments will cost you a fortune and take ages to pay off. (Based on you having the "low rate" only 29.9% card and not the 39.9% :eek:)

All I could find about overcharging was this old story from 2016, not relevant now http://www.moneysavingexpert.com/news/shopping/2016/06/argos-store-card-customers-could-be-due-100-after-late-payment-overcharging

If you are leaving payment very close to the due date it could be that, by the time the payment is cleared, you are late paying and getting charged for this - could that be the case ?

[Deleted User]

Argos are fine for getting 6 9 or 12 months free credit as long as you pay it off before the interest free period ends.

starlight68

If you have something from Argos on interest free and do not pay if off in full by the end of the term then the interest is added on from day of purchase on the full amount, no matter how much you have paid off, so you effectively lose your interest free period. More interest will continue to be added each month while you still have an outstanding balance.

As already mentioned, Argos is great for their interest free deals so long as you can pay it off in full by the end.