Interest charges

JennyFoxx65

Hi, I have a question. I have an Aqua card to build up my credit rating. Most of the time I pay it off in full. Last month I didn't and left £200 on it and have now been charged not interest on the £200 but on the whole amount (£1000 plus) which was around £25. I thought I would only be charged interest on the amount that I didn't pay that month but after speaking to Aqua about this they told me that you are charged for the whole of the amount you use unless you pay the balance off in full.
Could anyone tell me, is this the same with all credit cards? Thanks

[Deleted User]

That's absolutely correct and common to all cards. You're charged interest on your daily balance until cleared.

It's only waived if you clear in full.

TadleyBaggie

And even if you pay off the next statement amount in full, expect to pay small amount of "trailing" interest. This is interest on the balance you left on the card up to the point it is actually paid off.

BoGoF

Common misconception I'm afraid

dresdendave

JennyFoxx65 wrote: »

Hi, I have a question. I have an Aqua card to build up my credit rating. Most of the time I pay it off in full. Last month I didn't and left £200 on it and have now been charged not interest on the £200 but on the whole amount (£1000 plus) which was around £25. I thought I would only be charged interest on the amount that I didn't pay that month but after speaking to Aqua about this they told me that you are charged for the whole of the amount you use unless you pay the balance off in full.
Could anyone tell me, is this the same with all credit cards? Thanks

If the main purpose of the card is to build a good credit history (not rating) you must always pay in full, otherwise you are paying to improve your history.

PeacefulWaters

Your logic is completely flawed.

Why wouldn't they charge you interest on money owed?

TheShape

Deleted_User wrote: »

That's absolutely correct and common to all cards. You're charged interest on your daily balance until cleared.

It's only waived if you clear in full.

And there is at least one card (TSB Advance MasterCard) that charges interest whether paid in full or not.

Dobbibill

Standard practice with most credit cards.

chattychappy

If the 65 in the OP's handle is because she was born in 1965, then it might be the OP was remembering the good 'ole days.

Many many years ago, my Barclaycard did operate the way the OP expected. You only paid interest on the amount that was carried over. Then it was changed, so if you didn't pay in full, interest ran back to the statement date. Ie you paid interest on the all transactions on the statement from the statement date to when payment was received. You always got free credit between transaction date and statement date. Then it was changed to the position we have today and that is common practice. Interest starts on the transaction date.