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Does a credit company need to show you how they calculated your interest?
jesswells
Posts: 5 Forumite
in Credit cards
I just got my latest statement through from my Next store card credit account. This past month I paid off over £500 which was half of my balance, yet my interest is still higher than last month's! How is this possible? My payment was on the day that I received my last statement, exactly a month ago today, so it's not like I was paying interest on a large amount until just before this statement. I expected my interest to be about halved, not to have increased!
Any advice please because this just does not seem right to me!
Thank you
Any advice please because this just does not seem right to me!
Thank you
0
Comments
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You're charged interest on a daily basis, on the amount outstanding. You were accruing interest on a large amount until you made a payment - which some time after the statement was produced.0
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You paid your £500 close to the due date and there were more days in the billing period.I just got my latest statement through from my Next store card credit account. This past month I paid off over £500 which was half of my balance, yet my interest is still higher than last month's! How is this possible? My payment was on the day that I received my last statement, exactly a month ago today, so it's not like I was paying interest on a large amount until just before this statement. I expected my interest to be about halved, not to have increased!
Any advice please because this just does not seem right to me!
Thank you
Enjoy less interest on the next statement.0 -
If you don't want statements showing large amounts of interest, don't use a store card of any description, they are a rip off.I came into this world with nothing and I've got most of it left.0
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Or pay it off in fullMortgage free wannabe
Actual mortgage stating amount £75,150
Overpayment paused to pay off cc
Starting balance £66,565.45
Current balance £56099
Cc around £32000 -
I paid the £500 the day of my last statement, one month ago today. My current statement was dated today so I should have been paying a lot less interest for a month exactly, the whole of the current statement period. I just want to know if I can get them to tell me exactly how they calculated the interest?0
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Shakin_Steve wrote: »If you don't want statements showing large amounts of interest, don't use a store card of any description, they are a rip off.
Thanks for the helpful advice.0 -
I was under the impression that interest is calculated based on your current balance at the time the statement is generated so if you paid that money off in plenty of time before your statement is produced they would calculate interest based on the balance left. I work in a department store and that's how ours work.
Give them a call they will tell you how it's calculated, I called capital one once with a similar query and they spoke openly to me0 -
See post 2.
Interest is calculated daily. Not on the balance remaining after a payment0 -
Exactly right. Credit cards can be at 0% but store cards seem to go upwards from 29% and the staff earn commission from flogging them.Shakin_Steve wrote: »If you don't want statements showing large amounts of interest, don't use a store card of any description, they are a rip off.
The guy trying to sell me one seemed to think I would be more interested in being able to get it in pink than the APR.Debt LBM (08/09) £11,641. DEBT FREE APRIL 2021.
Diary 'Butti's journey : A matter of loaf or death'.
Diary 2 'The whimsical tale of the Waterbed of Debt' 48% off mortgage
'one day I will be rich and famous…for now I'll just have to settle for being poor and incredibly sexy'. Vimrod Member of MIKE'S :cool: MOB0 -
You ask them "please can you explain how you have calculated the interest" and take it from there.I paid the £500 the day of my last statement, one month ago today. My current statement was dated today so I should have been paying a lot less interest for a month exactly, the whole of the current statement period. I just want to know if I can get them to tell me exactly how they calculated the interest?0
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