Credit Card interest

I feel like a bit of a wally for not realising this sooner to be honest, but had a bit of a shock today. Got an American express card that I always pay in full every month, until this month. Bill of £1400, due on 8th July. Paid about £900 off through month and was then a day late paying off the final 500 odd. So to my thinking, that's 1 days interest payable on £500. Not the way they work evidently, because the balance wasn't paid in full, the monthly interest becomes due on the total balance of £1400. Aswell as the grace period on new purchases being lost so interest has been accruing straight away on everything I've bought since.

I feel absolutely bloody mugged off. What an absolute bunch of robbers they are. Really opened my eyes to how people could end up getting themselves into serious trouble with them

It is a lesson most of us learn after believing the situation to be like your initial understanding. The terms and conditions lay it out but very few people read them in full. You are not alone!

It is an expensive way of "borrowing" money.

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Originally Posted by chrisp_1927

I feel like a bit of a wally for not realising this sooner to be honest, but had a bit of a shock today. Got an American express card that I always pay in full every month, until this month. Bill of £1400, due on 8th July. Paid about £900 off through month and was then a day late paying off the final 500 odd. So to my thinking, that's 1 days interest payable on £500. Not the way they work evidently, because the balance wasn't paid in full, the monthly interest becomes due on the total balance of £1400. Aswell as the grace period on new purchases being lost so interest has been accruing straight away on everything I've bought since.

I feel absolutely bloody mugged off. What an absolute bunch of robbers they are. Really opened my eyes to how people could end up getting themselves into serious trouble with them

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Never had AMEX but I've played the CC system and interest free period / balance transferring for years.That don't sound right. Are you sure you was not late with the original payment?

You shouldn't start accruing interest on new purchases until you get your statement for that month. Maybe its different with AMEX.

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Originally Posted by Henry Hill

Never had AMEX but I've played the CC system and interest free period / balance transferring for years.That don't sound right. Are you sure you was not late with the original payment?

You shouldn't start accruing interest on new purchases until you get your statement for that month. Maybe its different with AMEX.

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The initial £900 odd was paid well before the date, then got the remaining 500 in a day laye. Yeah, I think they may have different rules. Just had them on chat and they said that you lose the grace period until next statement as soon as you carry any balance over. I nearly had a fit in the middle of pret when I saw the statement ! Think I'll stick with the Barclaycard in future

Make a complaint, always add in “treating the customer fairly” that raises a flag. make up something about the app kept crashing on your phone or say you had an emergency, considering it’s only a day they may over turn it. Whenever I’ve complained to the banks they usually come in my favour.

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Originally Posted by chrisp_1927

The initial £900 odd was paid well before the date, then got the remaining 500 in a day laye. Yeah, I think they may have different rules. Just had them on chat and they said that you lose the grace period until next statement as soon as you carry any balance over. I nearly had a fit in the middle of pret when I saw the statement ! Think I'll stick with the Barclaycard in future

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Probably the same rules. I think on mine (Tesco) you're interest free period only applies if you pay in full by the prescribed date. If you don't then interest is calculated based on the average daily balance throughout.
Careful withdrawing any cash aswell on credit cards as different rulesbapply. Interest starts accruing from the date of withdrawal.

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Originally Posted by chrisp_1927

The initial £900 odd was paid well before the date, then got the remaining 500 in a day laye. Yeah, I think they may have different rules. Just had them on chat and they said that you lose the grace period until next statement as soon as you carry any balance over. I nearly had a fit in the middle of pret when I saw the statement ! Think I'll stick with the Barclaycard in future

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Bastards. Sounds incredibly harsh charging you interest on the 1400 even though you paid the 900.

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Originally Posted by chrisp_1927

The initial £900 odd was paid well before the date, then got the remaining 500 in a day laye. Yeah, I think they may have different rules. Just had them on chat and they said that you lose the grace period until next statement as soon as you carry any balance over. I nearly had a fit in the middle of pret when I saw the statement ! Think I'll stick with the Barclaycard in future

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AMEX is different to most credit cards I believe - it does offer very good incentives though . My sons both use AMEX for everything whenever they can, even to the extent of getting me to pay for big items on their card[s] and then transferring the money across to them. They regularly have fights paid for - Dubai etc.

Sorry to hear about your incident though.

Had similar with Pulse credit card. I paid off what I thought was the balance but it wasn't the full amount. They charged a full months interest on the original balance.

I phoned them up to query it and they waived the interest as it was the first time I'd been in that situation.

I pay much more attention to my balance since then.

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Originally Posted by Michael Morris

Had similar with Pulse credit card. I paid off what I thought was the balance but it wasn't the full amount. They charged a full months interest on the original balance.

I phoned them up to query it and they waived the interest as it was the first time I'd been in that situation.

I pay much more attention to my balance since then.

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Luckily they did that for me today aswell, was good advice from 2b2bdoo upthread.
Yeah I think I'll certainly be checking mine more closely in future aswell!










'"AMEX is different to most credit cards I believe - it does offer very good incentives though . My sons both use AMEX for everything whenever they can, even to the extent of getting me to pay for big items on their card[s] and then transferring the money across to them. They regularly have fights paid for - Dubai etc.

Sorry to hear about your incident though.'"

Funny enough that's pretty much what I've been doing aswell. Glad I hadn't put anything weighty on it for my parents this month, or I might have had a full scale meltdown 🤣

Deleted wrong thread

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Originally Posted by chrisp_1927

Luckily they did that for me today aswell, was good advice from 2b2bdoo upthread.
Yeah I think I'll certainly be checking mine more closely in future aswell!










'"AMEX is different to most credit cards I believe - it does offer very good incentives though . My sons both use AMEX for everything whenever they can, even to the extent of getting me to pay for big items on their card[s] and then transferring the money across to them. They regularly have fights paid for - Dubai etc.

Sorry to hear about your incident though.'"

Funny enough that's pretty much what I've been doing aswell. Glad I hadn't put anything weighty on it for my parents this month, or I might have had a full scale meltdown 🤣

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Good news, I find the banks can be fair with things like this, sadly just need to complain a bit.

I put all minimum payment on Direct Debits so I don't have to remember them, then make additional payments and when its convenient to me.