Charged interest on a six day old transaction

MissM112

Hi. I have a credit card with only balance transfers on there (both at 0%) I don't usually use it for anything else.

On 6th July I paid the due balance of my holiday on the card, just until I'm paid at the end of this month. I thought as long as I pay it all off once the statement has been generated and by the due date, I'd not pay interest. However, my credit card statement has been generated 13th July and I've been charged £37 interest. I've queried this and they say it's correct and I'll continue to be charged interest. I have another credit card that I use and pay off the balance each month and am never charged interest. Their reply is below. Does this sound right to you? As I said I only have two balance transfers at 0% on there at the moment.

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Hi, xxxxx. You're speaking to xxxxx
I have checked your account and the interest for £36.87 is for your Retail purchases which are not on a 0% interest. 

Having checked, the interest is charged because we have not received the payment in full on your due date and also, retail purchases is not on a 0.00%. 

Looking back on your previous statement, we only received minimum payments. We bill interest up to and including the date the statement is produced. However, interest continued to accrue on your balance until the payment is made. Once you have cleared the total balance for 2 consecutive months you will have no interest to pay as payment to continue to pay in full and on time.

MrFrugalFever

This is correct, simply because your current balance on 0% isn't being paid in full. The general advice/rule on here is to NOT mix promotional rates with interest bearing purchase.

Unfortunately its something you will just need to take on the chin this time round.

GrumpyDil

So, have you made any retail purchases on the card which is what they appear to be saying? 

MissM112

GrumpyDil said:

So, have you made any retail purchases on the card which is what they appear to be saying? 

Yes I have on 6th July. I guess because I have the balance transfer, the balance isn't zero on this card so I won't get the interest free period I get on my AMEX which I do pay off in full monthly. Thanks! 

MissM112

MrFrugalFever said:

This is correct, simply because your current balance on 0% isn't being paid in full. The general advice/rule on here is to NOT mix promotional rates with interest bearing purchase.

Unfortunately it's something you will just need to take on the chin this time round.

Thanks for this. I had no idea but it makes sense! I use my AMEX card for purchases and never pay interest as I pay the balance off in full each month. I really wish I'd known as I have another card with zero balance I could have used to take advantage of the interest free period. Oh well, you live and learn. Thanks for your comment