I thought that if I paid off my shopping, with in a week I would not pay interest

Captianjack

I have a credit card that I took out a £2000 transfer to my bank account at an interest rate of 4.9% and I pay the monthly minimum plus £100 on top. I go shopping and put it on my credit card and settle the shopping bill on my credit card with in 3-7 days at most.
I understand the the 4.9% rate but for the shopping I do, even though its paid off in full, its charged at 22.12% for standard purchases. I thought I only got charged for standard charge if I left it unpaid until the next month.

I have phoned the credit card company and they said that you have to completely clear the whole amount in the month including the bank transfer amount I borrowed at 4.9% not to pay any interest on the shopping. but I said I don't understand this, as my July statement shows balance transfer balance owing £973.77 interest charged £4.86 Standard purchases £498.22 (which was paid with in a week) 0.00 interest.

I told the lady from the credit card company this and she said I should have been charged interest, for the £498.22 is this correct. So from now on do I just use my debit card and not use my credit card for any shopping even though I clear the shopping bill.

Thank you for any help and advice.

FlorayG

Yes that's correct. If you don't want to pay interest you have to pay off everything you owe before the next due date

redux

It varies. Some card brands will charge this use and some will not. I don't think you'd be able to persuade a change. Maybe look for another card for regular spending.

zagfles

Which card is it? Some cards you're OK to spend on and pay off the spending - but not too early - must be statemented, examples are Nationwide and Barclaycard. Look at the summary box, this will tell you. Some will say interest free only if you pay off the entire balance, others will say interest free if you pay off the balance excluding promotional balance/money transfers.

redux

Hang on a minute. If the money you send in is even before the statement appears with the spending on it, the money will probably pay early towards the balance transfer, and the spending still be charged interest. If that's what you're doing check this, and if so pay that back the day after the statement.

molerat

The general rule is never spend on a BT card ……… unless you know the precise terms of that card. The vast majority will charge interest from date of purchase unless you clear the full balance, those that don't charge are a small minority. More and more cards are separating purchases from promo balances and not charging interest but the rules need to be followed closely.

HillStreetBlues

https://forums.moneysavingexpert.com/discussion/comment/82126766#Comment_82126766

I think that is what is happening as well.
If the min payment & £100 is lower than the shopping then there will be some interest charged even if it's a card splits BT and spending.

Captianjack

Thank you for all the comments, My card is from the Halifax a clarity credit, yes I am paying the shopping off before I get the statement and I don’t know were, I got it from, I just thought I had 30 days to clear the shopping side of the bill and I would not pay any interest. I know now to use my debit card and leave the credit card alone. With Halifax closing soon I am moving to Nationwide so maybe it worth looking into a 0% credit card with them to pay the remainder of this balance off.

I am paying the minimum payment plus the £100 and also paying off completely, what ever I have spent out shopping, usually within three days but no longer then seven days.

molerat

I think the problem is paying it off before the statement which means the payment goes towards the MT and is not a payment towards the next statement. Does the post statement payment cover the purchases in full ? - I suspect not which is why you were charged interest, it must be at least the minimum payment and cover the purchases in full.

Halifax (and the rest of the LBG cards) changed their T&Cs a while back and the latest has this

We won’t charge interest on purchases added to your main balance during your latest statement period if, by the payment due date:
• you pay off your main balance in full (excluding any balance or money transfers on introductory or promotional rates), plus any
instalment plan payments, or
• if your minimum payment is higher, you pay at least the minimum payment required, and
you met the same payment requirement for the previous statement period

Captianjack

September Minimum Payment £48.45

Payments received £468. 84 CR

New transactions, fee and charges £342.00

Your new balance £1345.15

further down the statement is has

Balance type purchases ( standard ) 22.12 % balance £367.29 Interest £10.73

Money transfer of balance transfer 4.9 % Balance £977.86 interest £4.09

HillStreetBlues

https://forums.moneysavingexpert.com/discussion/comment/82127086#Comment_82127086

The mistake was paying off money before statement was issued.
The payment after the statement wasn't enough to cover the purchases hence you got charged interest on them.
Because errors like those that the general advice is not to mix BT or MT with purchase.