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I have a credit card which we use regularly for security (and Tesco Clubcard Points) but always pay it off in full every month. However, in August, I had to make an unexpected large purchase (flights to Australia that were at a price too good to miss, but I didn't quite have the funds in place at that time).
So - I didn't pay off the outstanding amount when the bill was due on Sept 15 (issued on 26 August) which included the interest on the tickets I had bought then got a further bill on September 26 which I paid off *IN FULL* on 6 October (as I had the funds in place by then, although it wasn't *DUE* until 15 October). However I have just seen that the bill I got on October 26 has further interest applied, even though I paid off the full amount as shown on the previous bill. I called to question them and they said it is 'residual interest' from the amount I didn't pay off in the previous month from the dates September 26 until 6 October. I can't understand how they can possibly have applied further interest when I paid off (early) the full amount shown on the bill. Is this normal? I feel like I have been stiched up.
The due date isn't in sinc with the interest cycle.
I've done the same, let my brother use a card I don't use to buy some flight which he's paid off but didn't immediately, just waiting on the rest of the interest coming through so I can tell him what he owes. pretty standard tbh.
Get yourself an interest free card.
in short, yet.
The statement shows the amount owed as of the statement date. Normally, if this only includes money you've spent during that statement period, there is no interest to pay until the payment date (that bit is interest free), so pay when you like, and no interest. This time however you had some money owed that was already accrewing interest. The statement showed the amount you owed on the date of the statement, if you'd paid it off that day you'd be in the clear, but as you paid it off (say) 2 weeks later, you owe interest on the extra 2 weeks.
No, it's correct. What you owed on Sept 26th included money that you'd passed the interest free period on, so by the time you paid it on the 6th (even if that's before the last date to pay it of the 15th) then there's still the interest owing between 26th to 6th
It's correct. Solution if paying off unpaid balance is to overpay by enough to cover the likely interest charge,
Welcome to why credit cards suck...
Man annoyed at paying interest on something he can't afford shocker!
Man annoyed at paying interest on something he can't afford shocker!
I was waiting on that one. I could afford it thank you, I just couldn't get to the money I have (as it was tied up elsewhere). Thanks for your contribution though, it really was welcome, insightful and useful.
But thank to the other genuinely helpful responses – if it is 'normal' to accrue interest like then then fair enough, I'll suck it up – goes to show though, 30+ years with a credit card, always paying off in full each month does make you a bit unaware as to how they can bite unsuspecting people...
hopefully the residual amount / interest wasn't massive, even at 20% apr's for only a few days - but it does then start to show how these payday loans soon skyrocket if you miss a payment and you're paying at hundreds of % rates.
Welcome to why credit cards suck...
They do if you can't afford what you buy on them / afford to pay them off, but for many other reasons they are very useful indeed.
hopefully the residual amount / interest wasn't massive,
No, it was only £17 but I just wanted to check it wasn't taken incorrectly.
I've had the same experience as the OP.
The "residual interest" was then paid off, the following month more "risidual interest", for the total ammount of 1p (rounded up). I called and asked how they wanted paying? They cancelled it off my account.
Nationwide CC doesn't add residual interest. When you clear the bill it clears it fully.
I have been told (Tesco) that they only add it once so assuming I pay off in full this month (which I will be doing doosuk) then no more interest will be applied.