Vanquis CC -Why have they generated me a Purchase interest of £140 (in statement)when my balance =£0

katesheet

Vanquis CC - why have they generated me a Purchase interest of £140 (in statement) when my balance was/is £0 ?


To cut a long story short, my Vanquis balance was around -£4500 in November/December.

I wanted to make this balance £0, to clear it all off so Paid + £4500
from my bank online banking to the Vanquis credit card.

Vanquis received it, and balance was clear.


I thought I would do this BEFORE the next statement date because the balance would then be £0 when generating the new statement = Hence the Interest would be £0

Why would there be Any interest generated on a £0 balance?

(Which I cleared by paying the £4500 payment online)

But when I received my next statement AFTER this £4500 had cleared then they showed a purchase interest of £140  (which I have not paid off yet)

Balance on CC at this point is

__________________________


Here is a Quick calendar: - (I have tried to be as accurate as I can)

Statement Generated date:

10 DEC 2023

Payment Due date:
6 JAN 2024


Original balance on CC Vanquis (in early December 2023) = -£4500

4 Dec 2023] PAID £4500! (online bank transfer)
= FULL BALANCE CLEARED

10 Dec 2023= Statement comes, and shows = Purchase Interest £140 (on statement)
- but why?

__________________________


So the main concern is Why have they generated purchase interest of £140 when my balance was £0 ?

and what can I do about it?

Does this seem like a mistake on their part?

can I get them to look into it, and make it £0, so I don't have to pay it?

I haven't paid the £140 back yet by the way.

Thank you xx

MorningcoffeeIV

It's not generated on a 0 balance. It's trailing interest from the £4,500 balance.

By the time you cleared it, additional interest had accrued since the previous statement.

All normal. Don't get a missed payment by trying to avoid paying it.

born_again

katesheet said:

Vanquis CC - why have they generated me a Purchase interest of £140 (in statement) when my balance was/is £0 ?


To cut a long story short, my Vanquis balance was around -£4500 in November/December.

I wanted to make this balance £0, to clear it all off so Paid + £4500
from my bank online banking to the Vanquis credit card.

Vanquis received it, and balance was clear.


I thought I would do this BEFORE the next statement date because the balance would then be £0 when generating the new statement = Hence the Interest would be £0

Why would there be Any interest generated on a £0 balance?

(Which I cleared by paying the £4500 payment online)

But when I received my next statement AFTER this £4500 had cleared then they showed a purchase interest of £140  (which I have not paid off yet)

Balance on CC at this point is

__________________________


Here is a Quick calendar: - (I have tried to be as accurate as I can)

Statement Generated date:

10 DEC 2023

Payment Due date:
6 JAN 2024


Original balance on CC Vanquis (in early December 2023) = -£4500

4 Dec 2023] PAID £4500! (online bank transfer)
= FULL BALANCE CLEARED

10 Dec 2023= Statement comes, and shows = Purchase Interest £140 (on statement)
- but why?

__________________________


So the main concern is Why have they generated purchase interest of £140 when my balance was £0 ?

and what can I do about it?

Does this seem like a mistake on their part?

can I get them to look into it, and make it £0, so I don't have to pay it?

I haven't paid the £140 back yet by the way.

Thank you xx

Interest from previous statements. When you do not pay in full each month, interest is running from date of purchases.

Think of a loan, to pay it off you ask for a settlement figure. That includes outstanding balance & interest up to a certain date stated.
A CC does not give you a settlement figure, only your outstanding balance. Leaving the interest to be paid next month, & the month after...
 

What can you do.. PAY IT.

Then expect as small amount next month. Longer you leave it the more to pay next month.

km1500

re next month - do you pay intetest on interest ?

Nebulous2

If you paid it on the 4th of December and the next statement was the 10th, then it is likely your previous statement was around the 10th of November. You've been charged interest from the statement date until you paid it on the 4th. 

MrFrugalFever

I believe the requirement for most credit cards is to pay in full for two consecutive months to start benefitting from the 'up to 56 days interest free' period, this is to account for any residual/trailing interest - as is the case here with your situation.

Pay the interest off of your card ASAP.

Keep_pedalling

What date should your account have been cleared from your November statement? Normally provided you make the payment by 5pm on that date you won’t be charged even if the payment takes a few days to clear.

lr1277

I am not clear on certain matters in which case these questions may be unnecessary.

You mention purchase interest. Is that because you have a card that is a 0% purchase card? In which case what was the end date for the 0% period?

Danny_G

2 questions which came to mind reading this:

Is this situation the same as saying the £140 interest generated was in 'arrays'?  would the be correct

and do all credit cards have this delayed interest payment structure ?

Nebulous2

There are two possible meanings for in arrears. It doesn't mean the account is in arrears, but it does mean the interest is paid in arrears . 

All credit card interest has to be delayed - because they have no idea when you will pay it, nor how much you are due them in advance. 

Credit cards can be very useful in managing your finances. There are some gotchas though.

If it isn't a special offer they will let you spend thousands of pounds and pay it back weeks later, interest-free. Fail to pay it in full and you will pay all that interest you have avoided, from the purchase date.