Interest on card...not expected

dazzaofdagenham

Hi all...trying to understand the concept of ‘trailing interest, as described by person phone.

Statement 1.....starting balance zero.....end of statement £150.01
Stateemtn 2 ....paid 175 over several payments.....new spending 350
Statement 3 ....this contains interest....what I am questioning...
Statement 1 had a balance of 150.01.....did I not pay that off with the 175 ?

Very confused

PeacefulWaters

Did you pay at least £150.01 before the due date?

Are there any cash, currency or gambling transactions?

dazzaofdagenham

Yup all paid before date on statement..

Only spending was petrol...amazon....and food shopping

molerat

Is it actual itemised interest or "estimated interest on next statement" ?

dazzaofdagenham

Nope, interest on statement a day or so ago..

The person on the phone says ( as best I can understand ) as I hadn!!!8217;t cleared the 150.01 before the new spending started...then the interest was due..

PeacefulWaters

dazzaofdagenham wrote: »

Yup all paid before date on statement..

Only spending was petrol...amazon....and food shopping

Did you pay some of the £150.01 before the statement for that amount was issued? If so, have you paid less than £150.01 between the two statements?

That's my best guess. If it is the case, you've been correctly charged interest.

dazzaofdagenham

Sorry....don’t quite get that.

At the end of the statement I owed 150.01......but before the min payment date I had paid more than the amount owed....150.01......but there was also additional spending gone on.

The amoun5 I paid was 175.....but over several payments...

Hoping that makes sense

PeacefulWaters

Without seeing the two statements and the dates payments have been received I'm struggling.

But I don't recommend that you post them here.

I do recommend simplifying how you use your credit card though. One payment a month, full amount, after statement is issued and before the due date.

Superscrooge

The most likely explanation is that you didn't make payments of £150.01 between the statement being produced and the payment due date. You only get the interest free period if you clear your balance in full.

It's difficult to be certain without seeing your statement and the dates the payments were credited to your account.

eg. If £75 of your £175 payments was made before your statement showing the balance of £150.01 was generated. Then you won't have cleared your balance in full if you only paid an additional £100

Easiest solution is to set up a DD to pay the full amount each month

RG2015

The reason @PeacefulWaters mentioned cash withdrawals, currency and gambling is that they incur interest immediately.

Also, are you sure that your payments reached the credit card company by the due date. The Easter holidays may have delayed your payments.

redpete

what was the balance on the statement before the £150.01, and did you pay that off in full before the deadline?