CreditCards Blog

hi guys,

something has just happened with my Barclaycard which has left me very annoyed.

following advice from these forums, last month i finally managed to pay off my credit card :j I raided my piggy bank and paid off the lot - 2,100 give or take a few quid. it was a massive weight off my mind.

yesterday i receive an email saying my new statement is ready and that i owe 13.62...! i don't remember using my card, so log on to check my balance online and see the full amount paid off, but there is also an interest charge.

i call up barclaycard to find out why they are charging me interest when i've paid off the balance in full, and they inform me that the 2,100 was as at 04/11/08. as i made the actual payment on the 19/11/08 i incurred interest between these two dates which was now due.

this seems really underhand to me. maybe i'm being naive, but it feels like they are just trying to squeeze a few more pounds out of me by charging interest daily.

is this normal and has anyone else experienced this?

thanks
darran

Yes it's normal. All CCs do this. Check your card's T&Cs

If 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. If you 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 Barclaycard.

That said, B'Card credits payments to your account on your statement date, regardless of when the payment is received. This means that, unlike most credit cards, there's no advantage in settling up early. If you make a payment before the payment due date, this lender will not reduce the interest-bearing balance until your next statement is produced.

Yes its normal, interest is calculated on a daily rate.