Level credit card beware!

jajake

I recently got a level credit card with a £500 credit limit. I wanted to build my credit score further BUT!
Level credit card charged interest from date of purchase, no interest free period unless you subscribe to their clear balance every month through a continuous payment authority with your bank debit card!
So I assumed that if I cleared my balance every month which I did do so then I wouldn’t pay interest but to my cost I have been paying interest because although I paid every month it was not a continuous payment!
Subsequently, I am closing my account forthwith! I advise anyone to think very very carefully if you are intending to get or use this credit card??? 

dr_adidas01

jajake said:

I recently got a level credit card with a £500 credit limit. I wanted to build my credit score further BUT!
Level credit card charged interest from date of purchase, no interest free period unless you subscribe to their clear balance every month through a continuous payment authority with your bank debit card!
So I assumed that if I cleared my balance every month which I did do so then I wouldn’t pay interest but to my cost I have been paying interest because although I paid every month it was not a continuous payment!
Subsequently, I am closing my account forthwith! I advise anyone to think very very carefully if you are intending to get or use this credit card??? 

Have you been paying your balance by the due date on your statement? If not then like every credit card you will be charged interest on the full balance that is shown your credit card statement. 

Also checking the level card T&Cs it mentions no of it needing to be a continuous payment, only that your balance needs to be cleared in full by your repayment date each month. 

cymruchris

jajake said:

I recently got a level credit card with a £500 credit limit. I wanted to build my credit score further BUT!
Level credit card charged interest from date of purchase, no interest free period unless you subscribe to their clear balance every month through a continuous payment authority with your bank debit card!
So I assumed that if I cleared my balance every month which I did do so then I wouldn’t pay interest but to my cost I have been paying interest because although I paid every month it was not a continuous payment!
Subsequently, I am closing my account forthwith! I advise anyone to think very very carefully if you are intending to get or use this credit card??? 

Did you pay your balance in full by the date given on your first statement?

If the 'due date' printed on that statement was for example the 15th of the month - then you clearing the balance by the 20th 'because it was in the same month' would result in you paying interest on the whole balance at the time of statement.

If this is what has happened - this would intimate that you're understanding of how the card worked might be flawed (is it your first credit card?).

Rather than rush to close it - find out if it's you that made the mistake - and if so, carry on with the card, and ensure you pay it off in full by the 'due date' printed on the statement each month. To be on the safe side - send your payment at least a couple of working days before the due date.

Opening a card - then closing a card within a month or two isn't going to help build a positive credit history - so if that's your aim - either complain if you DID pay in full by the statement due date - or if on checking you didn't pay by the 'due date' - then know that's what you need to do ongoing. Now you've got the card - better to manage it properly and move forwards. 

(Just as an aside - did you withdraw cash on the card? If you did - that would incur interest from day 1 - and there's no interest free period - cash withdrawals on a credit card should be for life and death emergencies only).

battyboimatt

I have had a level card for just over a year now and indeed it does charge intrest even when you pay in full, infact I have just checked my most recent statement for March and on the Summary Page is states: Interest-free period There is no interest free period on any transcations. Intresting link by Dr_adidas01 I might have to email them just to ask if this is new. 

IntoTheForest

To those claiming the OP must have done something wrong, he hasn't! The level accounts don't work in the same way as other credit cards. They charge interest from the date of purchase. There is no interest free period. 

Good call OP, there are better credit builder card out there. 

cymruchris

That’s interesting - a quick look under their faq suggests they have an interest free period if paid in full like a regular credit card? 

Grumpy_chap

cymruchris said:

That’s interesting - a quick look under their faq suggests they have an interest free period if paid in full like a regular credit card? 

But the third paragraph also applies to achieve the interest free period - select in the App.

Reads different to how most cards work.

cymruchris

Grumpy_chap said:

cymruchris said:

That’s interesting - a quick look under their faq suggests they have an interest free period if paid in full like a regular credit card? 

But the third paragraph also applies to achieve the interest free period - select in the App.

Reads different to how most cards work.

Yes - there appear to be specific instructions on how to achieve the interest free period - but if those instructions are followed - then you should by default not be charged interest. So it might be better int he OP's interest to follow these instructions, and maintain a well managed card over a period of time to build up a positive credit history rather than close the account a couple of months after opening it. 

Fighter1986

I have a Level card and saw it made clear to me during the application process that I would only achieve interest free on purchases if I have an active CPA for the full payment each month.

This is reduced by any interim payments I make to the card during the month.

Works fine for me, haven't paid a penny interest. 

Just set up a CPA.