Interest Charged

IAmNotStupid

Do all CC charge interest in the same way?
I have a John Lewis Partnership CC (but it is run by New Day) and if you don't pay the statement balance off you get charged with interest on the whole month's spending ie:- 
Month spend is £2000
Payment made £1500
Interest charged on £2000 
do all credit cards charge this way?
Also you only have 15 days from statement issued to payment being made - is that normal?
Would really like to find out - thanks

eskbanker

IAmNotStupid said:

Do all CC charge interest in the same way?
I have a John Lewis Partnership CC (but it is run by New Day) and if you don't pay the statement balance off you get charged with interest on the whole month's spending ie:- 
Month spend is £2000
Payment made £1500
Interest charged on £2000 
do all credit cards charge this way?

Yes, although if you crunch the numbers, you'll see that the interest is only charged on the full £2K for those days on which that was the balance, i.e. once reduced to £500 via the partial payment, that's the figure that would be used for interest thereafter.

katejo

eskbanker said:

IAmNotStupid said:

Do all CC charge interest in the same way?
I have a John Lewis Partnership CC (but it is run by New Day) and if you don't pay the statement balance off you get charged with interest on the whole month's spending ie:- 
Month spend is £2000
Payment made £1500
Interest charged on £2000 
do all credit cards charge this way?

Yes, although if you crunch the numbers, you'll see that the interest is only charged on the full £2K for those days on which that was the balance, i.e. once reduced to £500 via the partial payment, that's the figure that would be used for interest thereafter.

But remember as well that any new purchases will incur interest straight away because of the outstanding £500. No interest free period. 

IAmNotStupid

thanks .... but there are all the same ...it's not worth changing to a different CC unless it's 0% interest then?

Nasqueron

IAmNotStupid said:

thanks .... but there are all the same ...it's not worth changing to a different CC unless it's 0% interest then?

Yes all credit card companies operate this way, they always have. 

15 days from statement to payment is low but that's the only reason to change it. My main CC statement is always 19th (weekends move it back a couple of days) and it's always due on the 15th of the next month (again with weekend delays) 

DullGreyGuy

IAmNotStupid said:

Do all CC charge interest in the same way?
I have a John Lewis Partnership CC (but it is run by New Day) and if you don't pay the statement balance off you get charged with interest on the whole month's spending ie:- 
Month spend is £2000
Payment made £1500
Interest charged on £2000 
do all credit cards charge this way?
Also you only have 15 days from statement issued to payment being made - is that normal?
Would really like to find out - thanks

Interest is calculated daily but waived if you pay it off in full each month. So if you spent £2,000 in one go and only repaid £1,500 you'd be charged the interest on the £2k until the payment clears and then charged on the £500. Obv if it was a series of payments not a one off there would be a build up to the £2k. 

All companies do that the same, when they take DDs etc can vary a little and how payments are applied if, for example, you had 2 periods of 0% interest balances with one ending next month and the other ending in January. 

Barkin

IAmNotStupid said:

Also you only have 15 days from statement issued to payment being made - is that normal?l

Somewhat shorter than most, I'd say. 

My main card issues statements on 6th, with payment due on 1st (or thereabouts) 

tomxlisa

I’ve got a john lewis card and mine is much longer to pay than 15 days, may statement date was the 28th and payment was due by 24th june, june statement date was the 30th and payment is due by the 25th july.