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One for the credit card APR experts

Hope someone here can help.....the amounts of money involved are miniscule but I'm interested in whether I'm being stitched up. Here goes:

  • statement dated 8 July shows a credit card cheque for 632.00 debited against the account on 3 July. A cash interest charge @ 1.833% per month of
2.26 also appears. I assume this is for the period 3 July-8 July? Incidentally, a credit (direct debit payment) to the account of 7.71 on 4 July also shows, leaving the opening balance 5.45cr (7.71-2.26).

  • statement dated 8 August shows that the balance from the previous statement was paid in full on 17 July. There is also a 34.99 credit (direct debit payment) to the account on 4 August. However, this statement again shows a cash interest charge @ 1.833% per month of 2.26.

So I'm bemused as I am carrying forward a credit balance each month but still being charged interest for the credit card cheque on 3 July.

  • statement dated 8 September shows that the balance from the previous statement was paid in full on 21 August. However, this statement again shows a cash interest charge @ 1.833% per month of 0.01!!

Does anyone have the faintest idea what's going on here because I haven't a clue!

Thanks in advance for any advice.

Reply to
Tim Richards
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What does it say in the terms & conditions? My guess would be that the cheques accrue interest as soon as they hit the account, regardless of whether you clear the account by the due date. You also usually find that payments into the account are allocated in the way which costs you most.

Reply to
Stephen Burke

1.833% per month. That's a lot of interest.

LL

Reply to
LiviLion

In message , Tim Richards writes

Cheques are counted as cash and interest accrues from the date it hits the account until the date the last bit of interest accruing on it is repaid. Some cards charge interest on the WHOLE cheque amount even if youve reduced the balance as well.

Reply to
john boyle

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