Charged interest on balance transferred away?

Spies

I balance transferred one of my credit cards before the minimum payment was due, this was done in plenty of time before the minimum payment was due but on logging into the card I have some interest to pay, the minimum payment was £26 odd, the interest it has applied is £10.

I thought if the balanced was cleared before the next payment was due this would have not incurred interest?

Caz3121

did you have a balance on the previous statement that was not paid in full?...it is likely residual interest, you usually need to clear in full 2 consecutive months for it to stop

CliveOfIndia

As above, "trailing interest" often catches people out.

The other possibility might be that you made a cash withdrawal - you'll be charged interest on this even if you clear the card in full.  But not only an actual cash withdrawal at an ATM - some transactions are treated as cash, a very common one being buying foreign currency.  But there are a few transaction which can be treated as cash, and unfortunately it's not always easy to know in advance what they are.

Spies

Definitely no cash withdrawals made so it must be this silly trailing interest, I assume the way to avoid that in future is to BT away before the promotional period ends?

CliveOfIndia

You do have to watch when promotional periods end - more often than not, they don't tie in neatly with your usual statement cycle.

But if it was trailing interest at play here, that would imply that you had an interest-bearing debt which you didn't clear in full one month.  Did the amount on the card consist of a mixture of 0% and interest-bearing debt (for instance, if you'd spent on a BT card) ?

Spies

It was all 0% but the balance was cleared around 10 days after the promotional period ended which would likely account for the £10 interest

I mistakenly thought that I had until the next statement was generated to clear any outstanding balance without incurring interest