Credit Card interest on interest

StaceyHolt

I need some help with something...
I had a credit card which has a large balance on for a year, and I have now finally paid the whole balance off so my balance now shows zero.
I closed the card (which they then tried to offer me a better deal etc) trying to keep me, which I declined.
BUT... they are saying that I will get a final balance of interest on 2nd October when my next statement is due.
I don't understand how they can apply interest on a zero balance. I paid the whole card off in full by the date my minimum balance was due. To me it looks like they are making pay in advance of the next months statement.
Can anyone explain? Thanks

bengal-stripe

It's called 'trailing interest' and it applies to all Credit Cards.

It covers the interest between the interest charged on the last statement and the actual day the payment was received (which can be up to 3 1/2 weeks after the statement).

MallyGirl

They told you the balance last month but, unless you paid it in full on that day, it carried on incurring interest till you did pay. It is called trailing interest