Didn't tealize the crdit card interest scam, do you?

Tribulation

NickX wrote: »

Unless you are in a promotional period, you will only get the 45-59 interest free days if and only if you pay the statement balance off in FULL.

This is the crucial point that seems to have caused much debate tonight.

Many thanks.

Two further queries just to make things 100% clear (although I think I know what the answer is),

You spend £400 in January 45 days interest free, NO outstanding balance before hand.

You receive February's statement and you owe £400

You then spend another £300. Then a couple of days later you pay back £500 (cleared before 45 days is up)

Leaving you with an outstanding balance of £200. Does this mean as I still have an outstanding balance, I will pay interest on the whole £700? Or does it mean because I cleared the total amount owing on February's statement, I got the £400 interest free.

I understand what full means but it seems to me that if I don't get the £400 interest free in the above example (as I paid February's statement off in full I believe I do get it interest free), if I regularly use a card, I will always have some debt owing so in theory can never have an interest free period?

Now to complicate things.

Similar scenario to above.

Spend £400 a few days before my February statement is generated in January, interest free for 45 days.
In February I spend £300
I pay £300 off of the amount owing on February's statement.
March's statement says I owe £400
I then pay back another £300 leaving £100 balance on the March statement.. This is cleared within the 45 days of my initial £400 spend in January.
If I understand you correctly, in this scenario the credit card company in effect assumes that I still owed £50 from my £400 spend in January and £50 from my £300 spend in February hence I pay interest on the lot?

many thanks

Phil

Tribulation

Supercharge_Me wrote: »

Sorry this has to be one of the funnist things ive ever seen.

If dont understand how a credit card works then simply put, you shouldnt have one.
.

I'm glad you find it amusing that others don't have the same intellect as you when it comes to credit cards

I sort of understand how they work, I know they are there to make money and I know I pay interest on them. Is it such an amusing thing for me to wish to clarify with those that know best, so that I can get the best out of my cards?

daveboy

The lesson once again is:

Read your terms and conditions

This sort of thread makes me think that MSE needs a separate board, for the moaners who make mistakes and then blame the lender....they're appearing so regularly now it is getting ridiculous.

NickX

Tribulation wrote: »

You spend £400 in January 45 days interest free, NO outstanding balance before hand.

You receive February's statement and you owe £400

You then spend another £300. Then a couple of days later you pay back £500 (cleared before 45 days is up)

Leaving you with an outstanding balance of £200. Does this mean as I still have an outstanding balance, I will pay interest on the whole £700? Or does it mean because I cleared the total amount owing on February's statement, I got the £400 interest free.

In this case your statement balance was £400 and you paid it off in FULL, therefore no interest will be charged up until the Statement Date.

Effectively you made an overpayment leaving the card £100 in credit, then spent another £300 bringing the balance back to £200 debit.

When you get the following statement showing £200, if you pay this in FULL also you will pay no interest. If you do not pay it in full, you will pay interest on the £200 of transactions that show on that statement.

NickX

Tribulation wrote: »

Similar scenario to above.

Spend £400 a few days before my February statement is generated in January, interest free for 45 days.
In February I spend £300
I pay £300 off of the amount owing on February's statement.
March's statement says I owe £400
I then pay back another £300 leaving £100 balance on the March statement.. This is cleared within the 45 days of my initial £400 spend in January.
If I understand you correctly, in this scenario the credit card company in effect assumes that I still owed £50 from my £400 spend in January and £50 from my £300 spend in February hence I pay interest on the lot?

many thanks

Phil

I'm starting to get a little confused with your scenarios. The crucial thing is you will pay no interest if you pay the precise amount showing as due on your statement. It does not matter if you have accrued further purchases since the statement date, they will show on the next statement.

Just pay the full balance showing on the statement and no interest will be charged.