Please help on Interest rates

penners324

There's pages of information on how credit cards work on the money saving expert website.
And all of them end with, pay your monthly statement balance in full by the due date (stated on the statement) to avoid interest charges.

Most people set up a direct debit with the card company to clear the full statement balance.

IloveElephants

I cant believe ive been this stupid, thank you for your comment from now om im going to clear it in full and that it

penners324

You will be charged trailing interest as stated on an earlier post.

Willing2Learn

IloveElephants wrote: »

You are correct, I would only log into the app and not view the monthly statements

from now im going to clear the entire balance of £1,800 and not use the card for 1 month, hopefully I wont be charge any more interest then

I will use my savings/debit card for daily expenses like groceries.

It is okay to continue spending using the CC on stuff such as groceries as it is a part of your everyday budget and can be cleared in full each month (after you have received the statement and before the due date). The simplest way to pay in full every month is to set up a Direct Debit. (A DD is guaranteed to arrive before the due date).

BoGoF

IloveElephants wrote: »

You are correct, I would only log into the app and not view the monthly statements

from now im going to clear the entire balance of £1,800 and not use the card for 1 month, hopefully I wont be charge any more interest then

I will use my savings/debit card for daily expenses like groceries.

You need to get into the habit of checking them every month and not just to see if any interest due. There could be fraudelent transactions going through and you would never know.

IloveElephants

penners324 wrote: »

You will be charged trailing interest as stated on an earlier post.

How does thast work?

currently ive spent £1,700 and my limit is 2,750 so by the end of june I clear 1,700 the balance would be 0

so if I dont use the card anymore how much more will I have to pay?

IloveElephants

thanks

Im going to set up a dd now to make sure the balance is cleared every month,

this has really annoyed me when I noticed they were charging me interest

pramsay13

IloveElephants wrote: »

How does thast work?

currently ive spent £1,700 and my limit is 2,750 so by the end of june I clear 1,700 the balance would be 0

so if I dont use the card anymore how much more will I have to pay?

Depends on your interest rate.

To answer an earlier question the reason that some people get credit cards and then use them during the month and pay them off in full is usually to get some kind of benefit, e.g. I use Tesco credit card so I get points for spending on it, but I pay it off in full every month so I don't incur interest charges.

IloveElephants

Thanks for the tips, i never knew that you could gain points or advantaged by clearing and paying off in full each month.

My capital one card is 30%

penners324

What was the balance of the previous statement and how much did you pay against it?
Trailing interest will be the interest on this amount from this month's statement date until the day you make payment.