Question regarding charging interest

CCslave4lyfe

The card is with Lloyds if that matters.
I get issued with a statement on 3 June. The balance is £500 and minimum payment is £5. The due date is 29 June.
On 15 June I make another purchase, for another £500.
Now it's 29 June and I want to make sure that I will not be charged any interest ever. Do I need to pay the whole current balance of £1,000, or do I just need to clear the statement from 3 June for £500?

jjames1985

CCslave4lyfe said:

The card is with Lloyds if that matters.
I get issued with a statement on 3 June. The balance is £500 and minimum payment is £5. The due date is 29 June.
On 15 June I make another purchase, for another £500.
Now it's 29 June and I want to make sure that I will not be charged any interest ever. Do I need to pay the whole current balance of £1,000, or do I just need to clear the statement from 3 June for £500?

I wouldn't wait until the 29th to make a payment if you don't want to pay interest...
But you only need to pay the previous statement balance (£500) in full to avoid paying interest.

Nebulous2

That reply is accurate - but to elaborate slightly on payment. There will be a delay with payments registering with a credit card company, which means you're better paying earlier to avoid late payment charges and interest. Bank transfer by faster payment is likely to be fastest, with most hope of getting there on time. 
A direct debit is fine, and counts  as if it is on time, even if it is taken late.   They will often say "£500 will be taken by direct debit on, or shortly after the 29th of June." 

MinuteNoodles

If you want to make sure you're never charged any interest just set up a direct debit to pay the statement in full every month.

What jjames1985 said is actually not quite correct. Every month you will get a statement showing the spending for that month. As long as that statement is paid in full there is no interest added.

So for your example if you pay the £500 on the June 3rd statement in full on the 29th when it's due you'll pay no interest on that £500. If you pay the £500 you spend on 15th June which will appear on the July 3rd statement along with all other spending showing on that statement you'll not pay any interest on the June 15th spending.

daveyjp

Consider your statement as your bill.  Pay what is due on that bill before the payment date and no interest will be charged, don't leave it to the last day to pay it.

jjames1985

MinuteNoodles said:

If you want to make sure you're never charged any interest just set up a direct debit to pay the statement in full every month.

What jjames1985 said is actually not quite correct. Every month you will get a statement showing the spending for that month. As long as that statement is paid in full there is no interest added.

So for your example if you pay the £500 on the June 3rd statement in full on the 29th when it's due you'll pay no interest on that £500. If you pay the £500 you spend on 15th June which will appear on the July 3rd statement along with all other spending showing on that statement you'll not pay any interest on the June 15th spending.

not sure what part "isn't quite correct."  If it's the payment on the 29th thing I was pointing out that if you make a payment on the 29th it probably won't be counted as being made on that date and you'll end up being late and incurring interest and charges.