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Interest calcs on CC?

This is probably done to death, but I can't find anything to answer my question so apologies if I've missed the obvious.

On a steady balance of (say) £1000 over 30 days my CC company is charging me £9. They print the rate to be 0.6% which would equal £6 on simple interest. I assume they are charging on daily basis but are therefore charging a monthly rate 30% higher than they claim. How do they get away with this or have I or they got something wrong here? Thanks! ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬ To email go to my address and take out the dog ...

Reply to
JimGC
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Sorry, make that 50% higher! Now you can see why I ask advice... !

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Reply to
JimGC

Daily compounding of interest would not account for such a large discrepancy. Are you sure the £9 does not include an element of debt reduction, i.e. it's £6 interest plus £3 repayment?

Reply to
Ronald Raygun

"JimGC" wrote

OK, so that's around 11.4% per year. Not bad.

"JimGC" wrote

... which is around 7.4% per year. That's very good for a "standard" rate, or quite bad for a "promotional" rate. Which CC company is it?

Reply to
Tim

Tesco. And it's a "promotional" rate for an existing customer - a balance transfer into the account.

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Reply to
JimGC

No, that is interest only.

I simplified the question a little, but what I am working on is the actual printed statement showing estimated interest figure for next month on £4030 which they give as £37 (on

0.678% per month interest). My beans make it more like £28. Have I got it wrong?

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Reply to
JimGC

In message , JimGC writes

The 'estimated interest next month' bit could be calculated form the date of the current statement to the must pay by' date on the next statement, which will be longer than 30 days.

Suggest you count the days from the current statement date until the same date in March as the February 'must pay by' date and insert this into your calcs. It may work, but it may not!

Reply to
john boyle

Estimated interest will be from the transaction date to the next statement date, which could be nearly two months.

Reply to
Jonathan Bryce

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