Unexpected interest charge on credit card.

[AnonymousBird]

I had a balance of £750 on my December statement. Direct Debit took minimum payment on whatever date and I realised i could fund to pay off the balance in full before January statement date, so I did.

Just got my January statement today which clearly shows that the payments made to the card between the two statement dates exceed the balance of £750 but I've been charged £11 interest.

Before I phone them (not a job for a Saturday evening!) I wondered if I am missing something obvious? I thought if you cleared your balance, you paid no interest??? What could have caught me out?

Okay, the balance remaining after the minimum payment date (before you paid it off in full) - you will have been charged interest on those items from the time they were purchased/the previous balance due date ie sometime in December.

I think.

Is £11 less interest than you have been charged in previous months for a similar balance?

did you get a cash advance at all as they are charged interest from the date of the transaction? Did the second payment reach the account before the payment due date?

Was the payment due on the January statement date? I'm not sure, but I don't think mine are. My dd goes out on the last day payment is due. Was your payment after the dd?

The December statement should say on it when the payment was due by.

If you don't make the full payment by the due day they charge interest from the day of the transaction, not the day of the statement, I think.

the payment was probably due on the date the direct debit came out so if your other payment was made to your card after that date then interest would have been charged

That is probably it. I had been away, DD went out as usual on something like 27th Dec, ie. payment due date, I didn't make the payment of the balance until 4th Jan, when I was back from hol and realised I had sufficient to pay it off.

Ah well, so it probably means the interest is correct. But, at least I HAVE paid off the balance!

I don't normally have a big balance, but I'd paid for the flights for the holiday in early December, so much more than usual this month.

Thanks for your help.

Ring them and query it anyway, they will probably write it off for you if you usually pay on time and can say you thought it was going to be on time!

also note, interest is charged on the full amount from the date of transaction of the balance is not paid in full. Ie if you pay off £999 from a £1,000 balance, you will be charged interest on the full £1,000, not just the remaining £1 balance