:mad: :mad: :mad: :mad:
I know I've been here before - but I am absolutely fuming.
I intend paying off my full outstanding balance on my Natwest credit card on 16th December and closing it.
I was told the amount will be 7338.50 (ouch). Fine, I said, I will deal with that on 16th and close the account completely.
Natwest person on other end of phone "Well, actually no, there will be further residual interest as well...."
Fine, how much will that be I said (with gritted teeth)
Natwest person - "No, that's calculated differently - can't do that until the end of the month".
What I want to know is WHY they cannot give me one figure calculated with all the residual interest and whatever else they see fit to throw at me - so I can close the wretched account (21%) on the date I will have the money to pay it and get rid of it?
....sorry, I'm fuming, it seems so unfair.....
If, on 16 December, you decide to pay off your statement balance in full, having made the minimum or a partial payment the previous month, residual interest (or trailing interest as it's sometimes known) would accrue on a daily basis from the date of your last statement to the day the funds are credited to your account.
If you were to settle the statemented balance in full for two consecutive months, you would have x days interest-free on purchases. This applies to all credit cards, not just the NatWest card.
Natwest cannot give you a settlement figure, because the bank is unable to predict the exact date on which payment reaches your account.
Overpay by whatever amount is necessary that will cover any possible residual interest. You will have to work this out yourself or if you give exact APR and payment dates someone here can give a pretty accurate figure
When you next receive your statement you will be in credit.
1 Either spend to the EXACT amount in credit so that your next balance is ZERO.
2 Or ask to close the account and have a cheque for the balance sent back to you.
I know it works because I have done it with Nat West Credit Cards and RBS credit cards.
Some Credit Cards do not allow overpayments at all e.g Amex and I think Barclaycard so you have to wait for the 2 month cycle to complete.
:mad: :mad: :mad: :mad:
I know I've been here before - but I am absolutely fuming.
I intend paying off my full outstanding balance on my Natwest credit card on 16th December and closing it.
I was told the amount will be 7338.50 (ouch). Fine, I said, I will deal with that on 16th and close the account completely.
Natwest person on other end of phone "Well, actually no, there will be further residual interest as well...."
Fine, how much will that be I said (with gritted teeth)
Natwest person - "No, that's calculated differently - can't do that until the end of the month".
What I want to know is WHY they cannot give me one figure calculated with all the residual interest and whatever else they see fit to throw at me - so I can close the wretched account (21%) on the date I will have the money to pay it and get rid of it?
....sorry, I'm fuming, it seems so unfair.....
Why are you fuming when you've 'been here before' ?
The date you have the money (16th) will not be the date they receive the money (poss 18/19th, maybe even 22nd)so unless you'd like them to use a crystal ball there is no way that they can predict the exact amount and that's providing you do pay as you say you will. You can't expect them to give you a figure based on a promise to pay either. You will also have interest (residual)to pay the following month after closure unless you do as Afa suggests which will stop further interset accruing.
As standard you are required to have a clear balance for two consecutive months to enable instant closure. You must also cancel any Continuous Payment Authorities you have agreed to as without doing so you remain liable for any future payments taken.........
EDIT................regardless of whether you think you've closed the account.
I feel the OP's pain.
If I have a loan I can ask the company to give me a settlement figure. They provide me with a date; I pay and the account is fully settled and closed.
The OP says he's been given a figure, 7338.50, to be paid on 16th December as a settlement of the outstanding balance. Unfortunately, the way CCs work is not the same as a standard loan, and more debt will accrue.
Sorry, bud, but I do understand your frustration.
I feel the OP's pain.
If I have a loan I can ask the company to give me a settlement figure. They provide me with a date; I pay and the account is fully settled and closed.
The OP says he's been given a figure, 7338.50, to be paid on 16th December as a settlement of the outstanding balance. Unfortunately, the way CCs work is not the same as a standard loan, and more debt will accrue.
Sorry, bud, but I do understand your frustration.
be careful for what you wish..
with a loan settlement figure they can add a couple of months extra interest but with a CC they can only charge the interest to the date of payment.
So a CC holder will pay less interest than the loan.
Thank you for all your replies -
Yes, I know it's a promise to pay on a specific date which isn't guaranteed but surely they can give you a figure in same way as you would be given for a mortgage redemption for instance?
With a mortgage redemption this is calculated to a specific date (with a warning that the figure will change if it is redeemed on any another date) so why can't this be done with credit cards?
Also, with a mortgage redemption, they tell you to add on x amount of interest for every day after a specific date. It only gets more complicated if the month changes. Within the same month you can adjust the amount by calculating the daily interest.
"Faster payment" is now widely used. I bank with Natwest AND my credit card is Natwest. If I transfer an amount from Natwest current account to Natwest cc online why can't it go through on the same day?
I probably shouldn't have posted, but it's frustrating when I want to clear a debt completely it seems I can't without the bank spinning it out a bit longer.
But, yes, I sort of get the idea that the interest is calculated differently - it's just why it can't be at least 'estimated' more accurately.
Why are you fuming when you've 'been here before' ?
The date you have the money (16th) will not be the date they receive the money (poss 18/19th, maybe even 22nd)so unless you'd like them to use a crystal ball there is no way that they can predict the exact amount and that's providing you do pay as you say you will. You can't expect them to give you a figure based on a promise to pay either.
As I said, I shouldn't have posted - but see my post above re 'mortgage redemption figures' and 'faster payment'. That's what confuses me.
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