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  • FIRST POST
    • Hoopie
    • By Hoopie 9th Mar 18, 9:42 AM
    • 19Posts
    • 21Thanks
    Hoopie
    Credit card interest - am I very dim?
    • #1
    • 9th Mar 18, 9:42 AM
    Credit card interest - am I very dim? 9th Mar 18 at 9:42 AM
    Having lived for several decades and more, I can't believe that I have just found out something completely new about credit cards....

    I had a balance of 2300. I paid off 2000 last month (couldn't raise the whole amount). But I was charged interest on the 2300 (57).

    I queried this with Nationwide as I've never paid that much interest, and they say that's how credit cards work (they did refund agree to waive the charge this time, so credit to them ).

    I thought if I paid off 2000 then I paid interest on the 300 only?

    Have I been wrong all these years?? Can anyone explain this to me in simple terms? (yes I know I should always pay off the whole amount...but I didnt)
Page 1
    • zx81
    • By zx81 9th Mar 18, 9:49 AM
    • 17,262 Posts
    • 18,357 Thanks
    zx81
    • #2
    • 9th Mar 18, 9:49 AM
    • #2
    • 9th Mar 18, 9:49 AM
    Yes, you've been wrong all these years.

    You pay interest on the amount for as long as you borrow it, unless you clear in full, in which case they waive the interest.
    • Hoopie
    • By Hoopie 9th Mar 18, 10:10 AM
    • 19 Posts
    • 21 Thanks
    Hoopie
    • #3
    • 9th Mar 18, 10:10 AM
    • #3
    • 9th Mar 18, 10:10 AM
    ah, oh well. Thanks for putting me straight.

    Seems crazy that I pay the same interest whether I pay 2000 off or the min payment?
    • bengal-stripe
    • By bengal-stripe 9th Mar 18, 10:12 AM
    • 3,195 Posts
    • 2,088 Thanks
    bengal-stripe
    • #4
    • 9th Mar 18, 10:12 AM
    • #4
    • 9th Mar 18, 10:12 AM
    I thought if I paid off 2000 then I paid interest on the 300 only?
    Originally posted by Hoopie
    Interest is calculated on the daily balance. So in this case, let's say: 20 days balance 2300, then your payment gets credited leaving another 5 days with a balance of 300.
    • zx81
    • By zx81 9th Mar 18, 10:14 AM
    • 17,262 Posts
    • 18,357 Thanks
    zx81
    • #5
    • 9th Mar 18, 10:14 AM
    • #5
    • 9th Mar 18, 10:14 AM

    Seems crazy that I pay the same interest whether I pay 2000 off or the min payment?
    Originally posted by Hoopie
    You don't.

    Interest is no longer charges on the amount you have paid off. If you had paid minimum, your interest next month would be much larger.
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