Credit card interest charge

A

Aidomoss

Registered User
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Hi, I normally pay off my credit card balance before the payment due date is reached so I don't get charged interest. However, I didn't clear the last balance (May) in full. The bill was for E556.26. I repaid E550. I wasn't sure of the balance at the time but knew it was around the E550. So I was left with E6.26 which I knew I would get hit with interest. I received my bill for June and it has an interest charge of E11.69.
My question is Could the interest accumulated on E6.26 in one month be E11.69?
I can not ring the bank till Monday but I would like to know if could be correct?
 
yes it's correct.

Interest is charged on credit cards just like ordinary bank accounts. So €550 @20% for one month would be €9. So €11 is probably right.

If you pay your bill in full and on time , they don't charge interest. But you didn't, so you got charged interest on the full amount, not just the balance.

AIB's rule is that you must clear two bills in full and on time to not get charged interest. So you might be charged interest next month and the following month.

If this is a once off, then you should call your credit card company and they may waive the interest.

Even better, set up a direct debit, so it doesn't happen again.

Brendan
 
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