Credit card interest – am I very dim?


Having lived for several decades and more, I can’t believe that I have just found out something completely new about credit cards….

I had a balance of £2300. I paid off £2000 last month (couldn’t raise the whole amount). But I was charged interest on the £2300 (£57).

I queried this with Nationwide as I’ve never paid that much interest, and they say that’s how credit cards work (they did refund agree to waive the charge this time, so credit to them ).

I thought if I paid off £2000 then I paid interest on the £300 only?

Have I been wrong all these years?? Can anyone explain this to me in simple terms? (yes I know I should always pay off the whole amount…but I didnt)


Source link