Re: Credit cards

How much does it cost you using a credit card?
> > I'm with Barclays and I don't think there is an annual payment. > > But, there are interest charges. Purchase APR 17.9% and 21.4% cash > APR. I don't know the difrerence between these two. > > Anyway, if I'm not sure how interest is worked out. If I made a > credit card purchase for £100 at the start of the month and paid that > off before the expiry date for paying at the end of the month, do I > pay interest? Or do I pay interest on the balance outstanding after > the expiry date? > > Thing is though, if you don't pay up at the expiry date Barclays > charge you about £20. Well if that is the case everbody must pay the > balance before the expiry date, and I guess that means for spending > that £100, I paid £17.90, even though I paid before the expiry date. > Otherwise Barclays makes no money. > > I did think at one time that my interest charge was levied on the > balance upaid after the expiry date, but that is not true. Is it? > > TIA. > > Rich.

Aah penny dropped. If I do not pay £5 miminum payment, then I will get stung for £20 late payment charge. But, a lot of people just pay that and will pay the interest on the balance. If all the amount is paid then there is no interest levied.

I don't know about Barclaycard specifically, but generally if you pay the £100 balance in full before the due date you pay no interest. If you pay less than £100, you pay interest on the full amount from when you spent it to the date you paid it, and interest on the remaining balance thereafter.

However, if it is a cash withdrawal, then usually you pay interest from the withdrawal date regardless of when you pay it back. There is sometimes also a withdrawal charge.

Barclays make some of their money from the commission they charge to the merchant, so even if, like me you pay in full every month and never pay interest, they will still make money out of you.

There is a minimum amount you have to pay, usually between 2% and 5% of the balance, and if you don't pay that, they will charge the late payment fee.