How Interest is Charged

Interest is charged on credit card transactions if the credit card amount is not cleared in full by the 'payment due date'. Even if part of the total amount due is paid, interest will generally be charged on all that month's transactions.

The date from which interest is charged varies and this affects the amount of interest which accrues.

For most cards, interest on purchases is charged from the date the item was charged to the account or the date the item was purchased, but for a few cards it can be from the statement date. Some cards have no interest free period even if the account is cleared in full - these cards usually have a lower interest rate.

See Also: Loans & Cards Centre Credit Card Comparison Service

Last Updated: June 2007 © Moneyextra.com

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