Help with Credit Card issue

J

jb81

Registered User
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Would love some clarification on this. if anyone is good enough to help me.

So I got a credit card statement with say a balance of €4000 for that month. All months previous paid to date.
I did not get the whole €4000 paid of by the required date, and therefore incurred charges etc...

The next statement then had a balance of €6000 as I had used card since.

I am aware that I get charged interest on full balance if I only make part payments ( say I only paid €3900 the first month, I would still have got charged interest on the full €4000 ).

So my question is, how much do I have to pay this month to make sure I don;t get charged more interest on the previous balance of €4000?
Do I just need to make sure I have put in €4000 since the statement, or do I need to cover the interest that I incurred as well?

Basically I want to make sure that I only get charged interest on the transactions of €2000 last month on my next statement.

Hope this makes sense


Any help would be great.
JB
 
You don't get charged on the full 4,000. Just the part not paid off.

Credit cards are extremely complex, and there's a priority of settling payments. say for example you used the cad to withdraw cash at ATM. Any payment you make will be allocated first against that amount, before reducing your old balance.

The quickest way to get an answer is to call the credit card company.
 
Hi Redonion

I have card with bank of ireland and if i only pay part of the balance owing, I get charged interest on the full amount that was originally due.
Do you know of any cards that don't do this?

JB
 
Ah, I think I misunderstood your question.

Credit card interest is charged on the daily cleared balance. If you pay your full bill in time, it's interest free for the purchases that month. However, if you don't pay it in full, the interest is charged from the date of transaction to the date you do pay it. So if you pay 3900 off a 4k bill, in the first month you are charged interest on the full 4k. But the next month it's only charged on the 100 remaining.

That's how all the banks work.
 
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