Monthly interest charge

Ara1985

I thought I had cleared my Tesco credit card and accidentally overpaid a little, when I last logged into the account it said £180 in credit. As it was in credit I purchased something for £177. This was early in the month.

I have just logged into the account and it shows a balance of £400

In the interest summary box it’s shows ;
Purchases £53.59 charged at 1.456% on £383.90 outstanding balance
Transfers £17.87 charged at 1.575% on £17.87 outstanding balance

It seems they have brought £383.90 over from last statement (why? If it I cleared the balance and it showed in credit)

But even so 1.456% of £383.90 isn’t £53.59

Can anyone explain this if it’s correct?

Ara1985

Sorry must be £153 they have carried over from last statements and when I look at the balance that shows from the last one, minus my payments £153 (but showed in credit when I checked online!)

Even so the interest isn’t relative to the amounts?

redux

The interest isn't for exactly one month. On new spending it could be up to 7 or 8 weeks, by hhe time you pay just before the due date, in which case 1.456% a month becomes around 2% to 2.5%

Ara1985

Even if it 2% that’s not £53.59 on £383

I can’t call them till this evenings so just trying to get my head around it.

Ara1985

Grrr I get it now, the balance of 8000 something was from October previous statement so even though I paid it in full they charged me the interest. I thought you don’t pay interest if you paid it off!

eskbanker

Ara1985 wrote: »

Grrr I get it now, the balance of 8000 something was from October previous statement so even though I paid it in full they charged me the interest. I thought you don’t pay interest if you paid it off!

Ignoring what may or may not have been shown online, what does the latest statement show regarding payments received against the previous statement balance before its payment due date?

Ara1985

Balance brought forward £8133.39

29 Oct-Paid £7980
1 Nov-Purchase £177
9 Nov-Interest £53.59
9 Nov- Interest £17.87

If I pay the remaining £400 now am I going to get hit again next month!?

Sncjw

You don’t pay interest if you pay off the balance in full for that months spend if you only have that months spend on it. You must not have been paying it off in full prior to clearing it.

Ara1985

No I hadn’t I had just put that big spend on because full funds wasn’t available at the time so paid it off soon as I had it, being before the due date I thought it wouldn’t charge interest.

eskbanker

Ara1985 wrote: »

Balance brought forward £8133.39

29 Oct-Paid £7980
1 Nov-Purchase £177
9 Nov-Interest £53.59
9 Nov- Interest £17.87

If I pay the remaining £400 now am I going to get hit again next month!?

Just in case it's not clear yet, they've charged interest because you didn't pay off your October statement balance in full by its due date.

If you now pay off the full November statement balance today then they will charge a small amount of trailing interest next month to cover the amount you still owed them between 9 and 28 November, but after that then you'll pay no more interest as long as you pay each statement's balance in full before its due date.

Ara1985

Hi, I understand now where the interest charges are coming from however with regards to your comment, my October statement was £8133 payment due by 4 November. As I stated I paid £7980 on 29 October. I know that wasn’t full as per the statement but that’s what it was on my app. So why was that balance still brought over to the November statement?