Barclayard interest calculation

Yakkity

The £5060 payment in January paid the opening balance in full (and a portion went to pay off the New purchases bit).
So confused... the way I see it is the payment made in Jan and Feb both paid off the opening statement balance.

Brie

Yes - so when the previous balance is paid in full there is no interest charged.  And no interest is charged on new purchases.

But where you don't clear the previous balance in full interest is charge back to the date of purchase.  And all new purchases have interest charged as well from date of purchase.  Basically you lose any interest free period.

So in March where the prev bal was 3699.89 you only paid a part of that balance 699.89 so interest would be charged on everything you purchased in Feb from date of purchase each day that interest increasing until the date you paid the 699.89.  And interest would continue to accrue on that 3000 plus there would interest charged on everything purchased in April up to the date you made a payment which would reduce the amount interest was being charge against. 

So to me the 50 interest charged makes sense.  What doesn't make sense is why you have been charged so little interest the following month.

Brie

And def ask them to explain it to you.  And if they say they can't or that it's wrong simply ask "so what are you going to do about it?"  With luck they will write the interest off (happened to me repeatedly when I had cause to question their interest on my card.)

grumbler

Brie said:

So in March where the prev bal was 3699.89 you only paid a part of that balance 699.89 so interest would be charged on everything you purchased in Feb from date of purchase each day that interest increasing until the date you paid the 699.89.  And interest would continue to accrue on that 3000 ...

Yes, you nailed it. I think the spreadsheet will say it all, no need for asking for an explanation.

£6K+ of purchases in Feb is a big amount that can easily account for extra £25 of interest.

Yakkity

Thank you everyone for taking the time to read my ramblings and provide help. I guess (unsurprisingly) the statement is indeed correct. You'd think CS would know though!

born_again

Yakkity said:

Thank you everyone for taking the time to read my ramblings and provide help. I guess (unsurprisingly) the statement is indeed correct. You'd think CS would know though!

Depends on how far they went back..

It is only since your post 28 April at 2:14PM That it has come to light on the issue & where interest came from.

Depending on how your issue was worded, they may not have gone back through so many previous statements. 👍