Credit card interest

lita

Hi all, this is my first post so please be nice!!!

I just wanted a bit of advice as i cleared my credit card in december and have since bought a couple of items on and have noticed that they are adding interest from the day it shows up on the statement (i can view online).
I thought i had a certain amount of time before interest was added??? The first item i bought is on the statement for Dec 28 if this is any help. Please help as i think i need a new credit card!!!!!

wendy_ann1983

there are lots more knowledgealbe people on here than me but i think you need to check if your account says that you have a specific time interest free, say 20-30days

Phantom_Flan_Flinger

Who provides your card and what card is it?

Are you sure it's not just interest from the balance you cleared off in December?

CLAPTON

Interest is calculated daily from the day that you spend on the card and is charged until you actually pay the money off.

As a special arrangement however, if and only if you pay the full amount each month they cancel the interest and charge you nothing.
Hence the claim of 'up to 50 (or whatever) days free credit'.

But if you don't pay the full amount, even if it’s by a small amount you then get charged as I described above.

Also if you spend more money during the next month you will be charged interest on that as you have now lost the ‘no interest ‘ feature.
This also means that even if you now pay in full, you will get a small interest charge next month which will be the interest incurred between the statement date and the day you pay.
Again if you spend during this time interest will be added on the new purchases.
Only when the balance is zero for two consecutive months will you go back to zero interest.
It is how all credit cards work.

Milarky

CLAPTON wrote: »

if you spend more money during the next month you will be charged interest on that as you have now lost the ‘no interest ‘ feature

This also means that even if you now pay in full, you will get a small interest charge next month which will be the interest incurred between the statement date and the day you pay.

Again if you spend during this time interest will be added on the new purchases.
Only when the balance is zero for two consecutive months will you go back to zero interest.

It is how all credit cards work.

Not all cards make you wait two full months before interest-free periods can recommence - just a growing number - HBOS and RBS, that I can think of, and there could be others. Some cards will still allow you to be billed interest but if you pay the statement balance off before making further purchases (or even a full payment by the statement date after some additional purchases at the start of the month) these then offer the interest-free period again 'straightaway'.

[If you have an interest bearing balance until you've paid it off, it attracts further interest of course. What credit cards may do in this situation is add this ('post payment') interest to the purchases made that month but allow you to pay the whole amount by the due date without adding further interest (i.e. no 'interest on the interest')

If the OP will post which credit card they have here this will clarify exactly what they need to do to get back to interest-free periods again.

lita

My credit card is a lloyds TSB Advance mastercard

AJB1

Hi all
This is my first post. I wonder if anyone has any advice for me. Years ago when I was really struggling financially, single parent, student etc, I took out a credit card with Providian (specifically targeted at the poorer, high interest rate) the limit was £250. I reached the limit and then for years I paid small amount regularly but it was never enough to pay interest and something off the balance. I moved twice, changed bank accounts and forgot all about it although I did owe them this relatively small amount. It was never my intention to default. Last summer I was contacted by a debt collection agency acting for Providian who informed me I now owe £1500. I argued with the agency but have had to agree to pay them £25 per month til I get it sorted. They have now bought the debt and I don't know what to do. Can anyone offer a solution. Sorry for the length of the message.

AB