Question about credit card interest...

21
Found 27th Apr
I’ll try and give and example of the situation to make it easier than trying to explain.

spend £200 on credit card
pay £150 off when bill comes (£50 outstanding)
spend £200 the next month
pay £200 off when bill comes
(Leaves £50 outstanding)

will interest be paid only on £50 in this situation? (plus cumulative interest)
And when would I start paying interest in this situation? Is it from the first bill due date and would continue until the day it gets paid off?
Thanks
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21 Comments
Ask depends on the terms and conditions for the card. Most charge from a billing date so you will be charged on any unpaid monies from that date, any purchases will be charged on the next cycle - but only on unpaid cumulative balance.
Usually on the whole balance.for the £200 from the date of was made till the date payment was received, then next month on £50 for the whole month(and the interest from statement one) and the £200 from the date the transaction was made until the date payment was made then on the £50 from that date to the date of the next statement. Credit card companies do vary though. You can also have different interest rates for different transactions and companies may vary as to which transaction they apply a payment to. Clear as our but there will be an explanation on the back of your statement.
what does it say in the T&Cs you agreed to?
You would only be paying interest on the first £50 that wasn't paid off.

So any new credit you would normally get a month 'grace' to pay it off, although as others say it depends on what it says in your contract.
Bigfootpete7 m ago

You would only be paying interest on the first £50 that wasn't paid off.So …You would only be paying interest on the first £50 that wasn't paid off.So any new credit you would normally get a month 'grace' to pay it off, although as others say it depends on what it says in your contract.


Which card please? This is not how any CC I have ever seen operates. I believe physchobitchfromhell has the right answer.

If you want a principle for working out the interest then use this; 'how can we screw the customer for the maximum amount of interest?'
ccnp9 m ago

Which card please? This is not how any CC I have ever seen operates. I …Which card please? This is not how any CC I have ever seen operates. I believe physchobitchfromhell has the right answer.If you want a principle for working out the interest then use this; 'how can we screw the customer for the maximum amount of interest?'


Nationwide
psychobitchfromhell1 h, 49 m ago

Usually on the whole balance.for the £200 from the date of was made till …Usually on the whole balance.for the £200 from the date of was made till the date payment was received, then next month on £50 for the whole month(and the interest from statement one) and the £200 from the date the transaction was made until the date payment was made then on the £50 from that date to the date of the next statement. Credit card companies do vary though. You can also have different interest rates for different transactions and companies may vary as to which transaction they apply a payment to. Clear as our but there will be an explanation on the back of your statement.


Whatever balance each month is not paid off that’s what you pay interest on. So if you always have £50 owing you’ll always be paying interest on the £50 plus interest on the interest. I think it works out your normally get 30-45 days interest free.
ccnp42 m ago

Which card please? This is not how any CC I have ever seen operates. I …Which card please? This is not how any CC I have ever seen operates. I believe physchobitchfromhell has the right answer.If you want a principle for working out the interest then use this; 'how can we screw the customer for the maximum amount of interest?'


twenty odd years of doing it for a living! All calculated by computers obviously but if someone wanted a breakdown, it had to be done manually. Ok if you've only a couple of transactions and one interest rate but a beast of you have multiples
cmdr_elito4 m ago

Whatever balance each month is not paid off that’s what you pay interest o …Whatever balance each month is not paid off that’s what you pay interest on. So if you always have £50 owing you’ll always be paying interest on the £50 plus interest on the interest. I think it works out your normally get 30-45 days interest free.


if you don't pay off in full, it's generally on the full balance. Leave 1p And it stings you for the lot.
psychobitchfromhell1 m ago

if you don't pay off in full, it's generally on the full balance. Leave 1p …if you don't pay off in full, it's generally on the full balance. Leave 1p And it stings you for the lot.


I always pay mine off. Just paid over 2k off today actually!
cmdr_elito5 m ago

I always pay mine off. Just paid over 2k off today actually!


I do too. Seen so many people get themselves in such a heap of trouble. Too tempting. If I can't afford it, I don't get it.
psychobitchfromhell48 m ago

I do too. Seen so many people get themselves in such a heap of trouble. …I do too. Seen so many people get themselves in such a heap of trouble. Too tempting. If I can't afford it, I don't get it.


I booked at holiday so already had the cash, just used the card to pay for it for the protection it offers.
If you pay off the balance before the next bill is generated then no interest is due.

If you leave an unpaid balance and you get a new statement you'll be charged interest on that unpaid balance.

I tried to sum it up so it's clear.
cmdr_elito42 m ago

I booked at holiday so already had the cash, just used the card to pay for …I booked at holiday so already had the cash, just used the card to pay for it for the protection it offers.


You do right. Going anywhere nice?
cmdr_elito5 m ago

Portugal to visit family.


Oh lovely. I've never been to Portugal. I went to Madeira at Christmas and the Portuguese language fascinates me. I can read it fine but spoken is complete different ball game
psychobitchfromhell11 m ago

Oh lovely. I've never been to Portugal. I went to Madeira at Christmas and …Oh lovely. I've never been to Portugal. I went to Madeira at Christmas and the Portuguese language fascinates me. I can read it fine but spoken is complete different ball game


My dad has retired back to the village he grew up in, his wife is Madeiran so going to visit him and all the family. Complicated as haven’t been there in 28 years (long story). Taking my misses and my brother.
Edited by: "cmdr_elito" 27th Apr
cmdr_elito5 m ago

My dad has retired back to the village he grew up in, his wife is Madeiran …My dad has retired back to the village he grew up in, his wife is Madeiran so going to visit him and all the family. Complicated as haven’t been there in 28 years (long story). Taking my misses and my brother.


I loved Madeira. I'd go back in a heartbeat. Portugal is on my to do list. Internet went down last time I saw a good deal and I missed it. One day..
psychobitchfromhell3 m ago

I loved Madeira. I'd go back in a heartbeat. Portugal is on my to do list. …I loved Madeira. I'd go back in a heartbeat. Portugal is on my to do list. Internet went down last time I saw a good deal and I missed it. One day..


May or September there are usually some good deals on for and it’s still very warm. Portuguese love the English, unlike the Spanish that aren’t quite as welcoming.
cmdr_elito11 h, 14 m ago

May or September there are usually some good deals on for and it’s still v …May or September there are usually some good deals on for and it’s still very warm. Portuguese love the English, unlike the Spanish that aren’t quite as welcoming.


If you want to see the real portugal go away from the tourist areas to the small towns and villages away from the coast. The tourist areas are worth a look too, just depends on what experience you want.
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