Cash Interest

slaphead44

I paid my wifes credit card off in full last month a sum of £3,976 before the due date,and this months statement came through with a charge called cash interest of £19.08 so how can she owe that when the amount was fully paid i don't understand.

jeeves_2

slaphead44 wrote:

I paid my wifes credit card off in full last month a sum of £3,976 before the due date,and this months statement came through with a charge called cash interest of £19.08 so how can she owe that when the amount was fully paid i don't understand.

You need to check that it was paid by the due date thats normally on the statement.
It takes 2-3 days before the CC company actually receive the money.

Robert_Sterling_3

I might be wrong but .....

I think that if you pay your credit card off in full each month then no interest is chared except .....

If you make any cash withdrawals then interest is charged on the cash withdrawal from day one.

So if you paid off the apparent balance of your card but there had been a cash withdrawal fairly recently then the interest on the cash withdraw might well not be known to you at the time you paid the card off.

Stonk

Sounds like a cash withdrawal on a credit card. These are a VERY bad idea - "cash advances" as they are known, have no interest-free period (as purchases do, i.e., until the payment date) so they incur interest from the day you withdraw, and you are charged a percentage fee as well.

Incidentally, purchase of foreign currency is also treated as a cash advance, if I recall correctly. Using your credit card at an currency exchange shop to buy foreign notes might feel like an ordinary retail transaction, but I believe it goes through as a cash advance and you pay handsomely for it.

Maisie

Do you know that with some of the credit cards Tesco included you can pay the bill by phone up to the day before it's due. This by Tesco customer services and a debit card.
As it takes a few days to go through they will backdate payment to when you phone.
so bill is paid by due date. Great if you forget to pay bill and it's not gone past the due date.

ti1980

If you use your &More credit card in one of the Bureau de Change located in an M&S store, it counts as a purchase so you have the interest free days til your payment date.

The exchange rate is often better than the high street too.

Katykat

Yes, I've been charged as cash advance on a purchase of foreign money. Thought I was being clever when 6 months before I was due to go to Australia, the exchange rate was really good, so I "bought" some aussie dollars with my credit card. I was charged interest on it from day one. In the end I came out slightly on top as the exchange rate fell a little, but if I'd think twice before doing it again