Paying off credit card

sammyjammy

Well large for me anyway!

Hoping someone can advise me in whether I'm correct or not.

I usually pay off my CC in full every month but it now has had £1000 on it for a couple of months, I'm due to get £800 of pay arrears on Friday and want it to go towards the balance of the CC, now they calculate the new statement and interest on the 1st of December so any payment I make isn't going to reach them in time. Am I right in thinking that I would be better transferring the interest into my savings account until the week before Christmas and then paying the CC off? I think I'm right in that if I paid it next week it wouldn't make any difference to the interest charged?
Hope this makes sense!

Sam

gt94sss2

sammyjammy wrote: »

Am I right in thinking that I would be better transferring the interest into my savings account until the week before Christmas and then paying the CC off? I think I'm right in that if I paid it next week it wouldn't make any difference to the interest charged?

No, if there is an outstanding balance, credit card companies charge interest daily from the day of the transaction until it is fully paid off.

Its only if you pay off your credit card in full each month that you benefit from a 'interest free' period.

Regards
Sunil

Squirrel29

Thanks for that info gt... I always thought you got 56 days interest free on transactions even when have outstanding balance. The number of times I have paid for things on my card i.e concerts for friends and told them not to worry about paying me back until the next statement comes through!