Help Understanding Credit Card Interest Free Period

• 

  ShortyX on 15/03/2024 - 16:15

  You'll be charged interest but not much being a couple of days late.

• 

  AustriaBargain on 15/03/2024 - 16:26

  -4

  ChatGPT says your interest will be about 33 cents based on the information you supplied and assuming a variable purchase rate of 20.99 %p.a. If you left it for 365 days the interest would be $1,679. Actually, Chat GPThas been known to make mistakes. From time to time.

• 

  trapper on 15/03/2024 - 16:26

  It ends on the statement due date, which sounds like it was the 13th March, so you will be charged two days interest.

  • 

    mick1 on 15/03/2024 - 17:40

    +2

    That's not the way most credit cards work. Unless NAB are feeling generous and give a bonus 2 days for payment, they will charge interest from the purchase date until the date the balance is cleared. So for example if the card holder has made other purchases after the end of the statement period and these are still owing, there is no interest free period on any purchases made so far until the full (following) month's statement debt is cleared - or total of whatever is now owing is cleared.

    Having said all that I know NAB always give us one day's grace for payment - we've missed clearing the full statement amount owing by one day twice in past year and both times no interest was charged.

    • 

      trapper on 15/03/2024 - 18:35

      Interest isn't applied retroactively - if that's what you are trying to say?

      It's charged on the total balance owed, which will include any purchases made since the end of the last statement period.

      • 

        Mechz on 15/03/2024 - 21:18

        +2

        Not true, it is applied retrospectively if you go from interest free to paying interest because you didn't pay the full closing balance by the due date. The interest is calculated on the daily owing balance, but billed monthly.

        So on OPs next statement it will have interest for both statement periods.

        • 

          trapper on 15/03/2024 - 22:38

          +1

          @Mechz:

          it is applied retrospectively

          No you're wrong. Interest will only be charged from the day your payment was due.

        • 

          naru6705 on 17/03/2024 - 13:45

          @Mechz: You are incorrect

          https://www.commbank.com.au/articles/credit-cards/make-the-m…

      • 

        mick1 on 15/03/2024 - 23:59

        +6

        I haven't read the OP's card specific T&C but in Oz just about all credit cards with "interest free" periods work the same way. Interest is always calculated daily on the total balance owing. If cardholder clears the statement balance by the due date (in this case 14 days after statement period end date) then no interest is charged for that completed statement period. If the statement balance isn't cleared by due date, then full interest is charged. Interest is calculated daily on the balance owing - meaning that if a purchase is made on the last day of the statement period, interest is charged from that date onwards on that amount. Same if purchase is made on first day of statement period - the balance increases on that date and interest is charged on the purchase amount from that point onwards.

        If the OP clears whatever balance is now owing then all interest charges stop at that point because the balance goes to zero. In a situation where the statement balance wasn't cleared by due date, this is the only safe way of stopping all interest charges - at least until the next due date (would need to clear the next statement balance by that date).

        So yes - one way of looking at it is the interest is charged retrospectively - but it's not worded that way in the T&C.

        Banks make a lot of money from customers not knowing or understanding how credit card interest charging works.

        • 

          miwahni on 16/03/2024 - 00:32

          +4

          @mick1: Can't speak for all banks but I did 21 years servitude at St George and that is exactly how it worked. Pay closing balance on statement in full by payment date, no interest charged. Miss due date, interest is charged from day of purchase until day of payment.

          • 

            mick1 on 16/03/2024 - 14:13

            @miwahni: Seven years servitude for me at two banks mainly in card systems.

        • 

          trapper on 16/03/2024 - 11:30

          -1

          @mick1:

          one way of looking at it is the interest is charged retrospectively

          No it's not.

          https://www.commbank.com.au/articles/credit-cards/make-the-m…

          What happens if you don’t repay your closing balance in full?
          If you do not pay your closing balance in full or just make a minimum repayment, you will lose your interest-free period and interest will be charged on your unpaid balance from after the due date until you repay in full.

          OP will pay a couple days interest only - nothing will be backdated to the purchase date. I don't know where you got this crazy idea from but it's completely wrong.

          • 

            Mechz on 16/03/2024 - 13:58

            -2

            @trapper: Maybe you just don't know how to understand what is written? OP isn't even with CommBank.

            https://www.nab.com.au/personal/credit-cards/terms-condition…

            Interest is incurred on the amount of a transaction from the date the transaction is made, until the date it is paid off in full. You don’t incur interest for a transaction on the day it is paid off in full.

            • 

              trapper on 16/03/2024 - 14:34

              @Mechz: It's the same for NAB.

              2.4 How interest free periods work
              …
              If you pay less than your closing balance shown on your statement by the due date, your interest free period will end. You will incur interest on purchase transactions from the day after the due date on your statement.

              There is no back-dated interest, OP will only pay interest for the few days until he pays his balance off.

          • 

            mick1 on 16/03/2024 - 14:11

            +1

            @trapper: Not just a couple of days. The card user will "lose the interest-free period" (that's the period from the purchase date through to the payment due date) plus will be charged interest on the unpaid balance from and after the due date.
            As mentioned above, banks make a lot of money from customers not understanding how free periods and credit card interest works.

            • 

              sky blu on 17/03/2024 - 02:21

              +1

              @mick1:

              The card user will "lose the interest-free period" plus will be charged interest on the unpaid balance from and after the due date.

              Agreed, and so according to OP stating:

              We have transferred the full 8k now but it was 2 days after the payment due date.

              So you're saying it's not 2 days of interest payable?

              • 

                mick1 on 17/03/2024 - 17:20

                -1

                @sky blu: unfortunately no. There's no interest free period if you miss the due date to clear the statement balance - unless they give you a grace period.

                • 

                  sky blu on 17/03/2024 - 18:49

                  @mick1: Then how many days of interest payable?

                  Just stick to OP's scenario and advise the applicable days of interest payable.
                  Also advise the amount of interest payable.

                  • 

                    mick1 on 17/03/2024 - 23:09

                    @sky blu: It will be interest on the $8k from the purchase date through to the date the balance was cleared - which OP says was 2 days after the statement due date. So if - for example - purchase date was a week before the end of the statement period, OP will be charged this number of days interest:
                    7 days (period from purchase to end of statement period) plus 14 days (end of statement date to due date) plus 2 days (paid 2 days after due date) = 23 days.

                    To calculate amount of interest need interest rate on the card plus exact dates plus exact amount.

                    If I was OP I'd call NAB and say it was first statement for the card and something went wrong etc. My experience for what it's worth - NAB are a little more reasonable than the other 3 big banks.

                    • 

                      sky blu on 18/03/2024 - 00:04

                      +1

                      @mick1: I believe you are confused on when interest is incurred. The 23 days of interest is only true if OP was not eligible for the interest-free period.

                      OP's scenario starts with the interest-free period. At the Payment due date i.e. at the end of the "up to 44 days", OP's purchases totalling 8k within the Statement period are still within the interest-free period.

                      OP did not pay the full closing balance (Statement balance), and thus loses the interest-free period.

                      Interest is incurred on the daily closing balance after the Payment due date i.e. 8k in this case:
                      Day 1 interest = (Annual interest rate / 365) x $8,000
                      Day 2 interest = (Annual interest rate / 365) x $8,000

                      In fact if OP paid the 8k and it cleared on the second day after the Payment due date, then OP would only be charged Day 1 interest - interest is not incurred on the day the closing balance is paid off in full.

                      • 

                        mick1 on 18/03/2024 - 12:48

                        -1

                        @sky blu: Your own reply has the answer in it.

                        OP loses the interest free period (ie interest for period from purchase date to due date) because missed the due date payment, plus is charged interest for period after due date until balance is cleared.

                        See miwahni reply above.

                        • 

                          sky blu on 18/03/2024 - 15:47

                          +1

                          @mick1: You know for someone who had 7 years working for 2 banks, I'd expect you to be able to provide a more definitive answer.

                          Let's try again:

                          See miwahni reply above:

                          Pay closing balance on statement in full by payment date, no interest charged. Miss due date, interest is charged from day of purchase until day of payment.

                          Agreed. Interest is charged from day of purchase for purchases in the NEW Statement period when the interest-free period ** is lost **.

                          ---

                          I.e. this is not applicable in OP's scenario - the 8k purchases were made in the Statement period when OP was ** eligible ** for the interest-free period.

                          ---

                          As OP did not pay off that Statement balance, they lost the interest-free period. Interest is then charged daily on the closing balance from the Payment due date - not backdated from the date of purchase for the 8k transactions.

                          ---

                          Let's look at your response:

                          OP loses the interest free period (ie interest for period from purchase date to due date) because missed the due date payment,

                          You are saying b/c OP loses the interest-free period, and so is charged interest on the 8k for the entire period "from purchase date to due date" - this is the issue and the point of our discussion here.

                          You're saying OP is charged interest for 23 days.

                          I am saying OP is only charged interest for technically 1 day.

                          Perhaps miwahni can revisit and provide a response applicable to OP's scenario.

                          As for you, if you are going to respond: since we know OP's card is NAB Qantas Rewards Premium Credit Card - if you can provide the links to the NAB's T&Cs/FAQs (or any links you want to use) to explain how you arrived at 23 days of interest in OP's scenario.

                          Lastly:

                          plus is charged interest for period after due date until balance is cleared.

                          Agreed, no dispute here. In OP's scenario, OP did not pay off the 8k on the Payment due date, and so interest is charged daily on the closing balance (8k) after the Payment due date until balance is cleared.

                          • 

                            mick1 on 18/03/2024 - 23:31

                            @sky blu: Correction: I should have said 22 days for the example I gave (not 23) as interest is not charged for the day payment is made - as you correctly pointed out.

                            To explain again:

                            The interest free period always commences on the purchase date and continues through to the payment due date for the statement period in which the purchase was made.

                            The interest free period is conditional - the cardholder only becomes eligible for it if s/he pays the statement amount in full by the due date - which in this case is 14 days after the end of the statement period in which the purchase was made.

                            If not paid by due date, cardholder ceases to be eligible for the interest free period commencing on the purchase date - not just the period after the new statement period begins.

                            In this situation, best option for the cardholder is to reduce the card running balance to zero. If this is done, most "interest free days" credit card systems in Australia will restart an interest free period ** from that date forward ** through to the due date for the then current statement period.

                            • 

                              sky blu on 19/03/2024 - 03:02

                              @mick1: Are you able to provide any links to NAB T&Cs or any financial institution of your choice to support your statements:

                              The interest free period is conditional

                              and

                              If (the statement amount is) not paid by due date, cardholder ceases to be eligible for the interest free period commencing on the purchase date - not just the period after the new statement period begins.

                              You are saying interest is not charged conditional to the cardholder paying the statement amount in full by the due date.

                              In other words, interest is charged and backdated to the purchase date if cardholder fails to pay in full by the due date.

                              Please provide links to any financial institution's wording that says what you are saying.

                            • 

                              trapper on 19/03/2024 - 13:18

                              @mick1: look you're just completely wrong here and giving out bad information.

                              The terms and conditions outlined by NAB directly contradict you. Refer to section 2.4 "How interest-free periods work" in their terms and conditions document: https://www.nab.com.au/personal/credit-cards/terms-condition… It explicitly addresses this exact scenario - a missed payment - and clearly outlines the consequences. They even have a diagram…

                              Just read that and think about it carefully before you reply again. You think you understand this, but you don't.

• 

  jv on 15/03/2024 - 16:26

  The 'up to' is what is really doing my head in

  it depends on the purchase date….

  The most you will get is 55 days.

• 

  trapper on 15/03/2024 - 16:30

  +1

  btw the interest isn't going to be much for only a few days so don't stress out about it.

  ie, $8000 * 20.99% / 365 = $4.60 a day

• 

  mbck on 15/03/2024 - 16:39

  +3

  https://www.commbank.com.au/articles/credit-cards/make-the-m…

  This explains it better i think.

• 

  gajpal on 15/03/2024 - 16:49

  +6

  Also, if this is your first time, call them and ask nicely for the interest amount to be waived. They take it into consideration. Be honest and they will waive it off, since the amount is not much.

• 

  foxmulder on 15/03/2024 - 18:24

  +1

  As you seems to be able to pay anyway, the easier way to understand is you pay $0 interest if you pay whatever the closing balance amount is before the due date.

• 

  SmiTTy on 15/03/2024 - 19:04

  Also be careful that if U haven't paid anything at all on the due date, the cc company could possibly charge you a late fee. Usually there is a minimum payment required on your statement to avoid this.

  If you do incur this, just call them up and in my experience they're quite lenient

  • 

    ddilrat on 16/03/2024 - 12:38

    Yeah try this. Honest mistake first time whatever, they have done it for me in the past but actually only after a good 12 months of paying on time

• 

  hasher22 on 15/03/2024 - 19:28

  +1

  If you purchase the 8k item from interest free day 1 until your statement due day which is day 44, you will get the 8k item interest free when you pay your statement in full.

  But, in your case, your first statement period started on 16th Feb and your due date is 13th Mar, this is 33 days. Your first statement may have been prorata because it's your first month, I assume you only got up to 33 days interest free period because it was your first statement. Are they in breach of the 44/55 days interest free? Most likely not because it's always "up to" X days. You got up to 33 days this time.

  1. You purchased the 8k item on 16th Feb, 1st statement arrives and due date is 13 Mar, you got 33 days interest free if you pay the statement in full.
  2. You purchased the 8k item on 29th Feb, 1st statement arrives and due date is 13 Mar, you got 14 days interest free if you pay the statement in full.
  3. You purchased another item for 8k item on 1st Mar, 2nd statement arrives and due date is 13 Apr, you got 44 days interest free if you pay the statement in full. Assuming your first day interest free is 1st of each month.

  Ring the CC company and ask what day is the first day of your interest free period start. I know with ING credit cards, they make it easy and the first day of my interest free period is always the 1st of each month.

  This is a very good video in laymen terms how interest free works on CCs: https://www.youtube.com/watch?v=TYK5GA4uYwU

• 

  USER DC on 15/03/2024 - 22:31

  For this particular card it has a 44 day 'interest free period'. NAB says on it's website "the 44 or 55 days begins at the START of your statement period and ends at your statement due date. This is what we mean by 'up to'" (The 'up to' is what is really doing my head in).

  so think of it as 14 days or 25 days after the statement closing date. THIS IS the BEST way to think about it. So Cycle 1 ends in 4 days then you have either 4+14 days or 4+ 25 days interest free period (given transaction gets settled today).

  Or If buy today, transaction settles in 3 business days, statement ends in 2 days. then you got to think of this transaction being done in THE NEXT statment period, (which ends in something like 43 (29+14) or 54 (29+25) days (remaining days until that statment period's intrest free period ends) this is because statement period ends in 29 days, and then you get an extra 14 or 25 days after that to pay it off for intrest free)

  And if you are really unsure, you should just pay it of asap within 1-7 days of purchase. Most banks actually clearly tell you exact $ amount you need to pay and by when (including any overdraw amounts) in their apps. (At least all big 4 do).

• 

  Meho2026 on 16/03/2024 - 05:58

  +1

  This is how the bank explained it to me.

  If you don’t pay the full balance on the due date then you lose the interest free period.
  So you will pay interest from the date of purchase.

  The only way to restore the interest free period is to have a zero balance on the first day of a new statement period.

  This is how you can get trapped in a loop.

  Because you were late paying, you will pay interest on the previous statement period purchases and lose your interest free days for the current statement period.

  Every purchase you make now you will pay interest on straight away.

  The only chance to get out of the loop is to have a zero balance at the start of the next statement period.

  The way to do that is over pay the amount currently owing on the card so the excess covers the accruing interest.

  If you just pay the spend amount, the interest will be added at the end of the statement period and put you in the negative again for the first day of the next cycle.

  As far as understanding the interest free days, if you make a purchase on the first day of a statement period then you get the maximum interest free days.

• 

  trapper on 16/03/2024 - 11:37

  +1

  The only way to restore the interest free period is to have a zero balance on the first day of a new statement period.

  It doesn't need to be on the first day of a new statement period.

  If you pay it down to zero at any point you will be back interest free immediately.

  Alternatively if you wait to get your next statement and just pay the amount it says and you will be back interest free from that point. - but will have copped daily interest in the meantime, so it's better to just pay it back to zero asap.

  • 

    Meho2026 on 16/03/2024 - 18:58

    -2

    I was told that paying just the amount charged doesn’t account for the interest that you are accruing
    The interest gets added on at the end of the statement period which pushes you negative for the first day of the new cycle

    “Make sure your account has a zero-credit balance from the first day of a statement period. Your interest-free period will start from the first day of the statement period where the account has the zero-credit balance.”

    https://www.nab.com.au/help-support/personal-banking/manage-…

    • 

      sky blu on 17/03/2024 - 02:39

      +1

      "I was told" then proceeded to copy & paste just the part to support your statement.

      Here's the full copy & paste from your NAB link:

      This is how you can restart your interest-free period for purchases:

      • Pay your closing balance in full, or your interest free days payment by the due date. Your interest-free period will then start on the day you make the payment.

      • Make sure your account has a zero-credit balance from the first day of a statement period. Your interest-free period will start from the first day of the statement period where the account has the zero-credit balance.

      The first bullet point is exactly what trapper said: "If you pay it down to zero at any point you will be back interest free immediately."

• 

  ozbargainsam on 16/03/2024 - 12:13

  I've learned something new from this thread (about what happens if you forget to pay/outside of IFP), but I believe we've all overcomplicated what the OP is asking (and they also are MIA).

  Assuming you're currently eligible (which isn't what the OP is confused about, since their card account is so new): the interest free period is statement start date until statement due date. Nothing to it. The OP's 'due diligence' didn't include reading the statement 'due date' apparently.

  'Up to' is a very flexible phrase. You don't walk into a store with a 'up to 90% discount' and expect every item to be 90% off.

  Finally, it's almost irrelevant how many days of interest free you get, since it's just a rolling effect, after the first period is done, it's just an offset. It's a bit like how I pay my rates a month late…I get to keep a little extra cash in my offset. But if I pay a month late every quarter, I'm still paying every three months, so the benefit is just one month of gained interest, forever. In the same way, if you spend about 3k/month on your CC, the IF period is just a one time benefit from your first ever CC. Large once-off purchases aside.

• 

  ddilrat on 16/03/2024 - 12:36

  I think you're right

• 

  Mechz on 16/03/2024 - 14:02

  +1

  OP, do yourself a sold and call them to change the closing date of your card to one that suits you.

  ie So your due date is after you get paid.

  • 

    Broke-Ken on 17/03/2024 - 16:55

    My mind is blown, never understood how they set the closing date, but to know that you can get it changed is a game changer, thanks for the tip!

• 

  MrGarciaA on 18/03/2024 - 15:03

  If your statement is from 16 Feb - 27 Feb, then your interest free period for that statement is the 16th Feb. Your interest free period ends on 13 Mar which is typically your due date.

  If you made a purchase on the 16 Feb, then you have 44 days (i.e. up to the 13 Mar) to pay off that purchase. If you made a purchase on the 27 Feb, then you have 14 days (i.e. up to the 13 Mar) to pay off that purchase.

  Likewise, if you made a purchase on the 16 Feb, then the bank will calculate interest owing on that purchase until you pay that purchase off presumably on the 13 Mar i.e. you will be on the hook for 44 days worth of interest. If you made a purchase on the 27 Feb, then the bank will calculate interest owing on that purchase until you pay that purchase off presumably on the 13 Mar i.e. you will be on the hook for 14 days worth of interest.

  The "interest free period" really only refers to whether or not the bank will hit you with a "total interest" charge if you do not pay your balance off in full by the specified due date. If you fail to, as you unfortunately have, then the bank will charge you the calculated interest for all purchases you made within the 16 Feb - 27 Feb period, up to and including 13 Mar. That's what you will see on your next statement, presumbably sometime in late March.

  Unfortunately, if you've made any purchases since the 27 Feb, and because you missed your payment due date, then you are now also on the hook to pay any interest calculated daily for any purchases you made since 27 Feb. So in your next statement, you will be hit with two interest charges: one covering your statement for 16 Feb - 27 Feb AND one covering your statement from 28 Feb - XX Mar.

  In order to regain your interest free period again for the month of April, you must pay off 4 things: (1) your entire balance owing from the 16 Feb - 27 Feb (which from what you've said you've already done); (2) the entire interest charged for all purchases from 16 Feb - 27 Feb; (3) the entire balance owing from 28 Feb - XX Mar; and (4) the entire interest charged for all purchases from the 28 Feb - XX Mar. And you must do this by the due date.

  • 

    trapper on 18/03/2024 - 15:25

    So much bad information being given on this topic…

    https://www.nab.com.au/personal/credit-cards/terms-condition…

    If you pay less than your closing balance shown on your statement by the due date, your interest free period will end. You will incur interest on purchase transactions from the day after the due date on your statement.

    The interest-free period ends the day after the missed payment. You start paying interest on the total balance from that day forward. Nothing is back dated to any earlier date.

    • 

      MrGarciaA on 18/03/2024 - 16:25

      It's not bad or incorrect information, just outdated. The point of confusion here is whether or not interest is incurred restrospectively. For since CCs have been around in Australia, CC interest is applied retrospectively.

      However after some digging around which wasnt easy, since December 2018, is appears that ASIC passed a rule that prohibits lenders from backdating interest, so therefore you can only incur interest now from the due date onwards. But this is clearly not widely known and ASIC obviously didnt make a big hoo hah about it, thus many of us still presume that the old rules still applied.

      All that means is that interest will instead be calculated on the opening balance of $8k for two days (from the 13 Mar - 15 Mar), and then any subsequent purchase made from the 13 Mar onwards.

      OP will still need to pay off 4 things to reclaim their interest free period: (1) the entire balance from the 16 Feb - 27 Feb; (2) the interest charged on the total closing balance for the statement period from the 16 Feb - 27 Feb; (3) the entire balance owing from the 28 Feb - XX Mar; and (4) the interest charnged on the total balance owing on the statement period from 28 Feb - XX Mar, which will have been charged on any balance as at 13 Mar.

      • 

        sky blu on 18/03/2024 - 16:46

        Interesting. Thanks for the ASIC info.

        Regarding the 4 things you mentioned for OP to reclaim their interest-free period:

        (1) the entire balance from the 16 Feb - 27 Feb = The 8k

        (2) the interest charged on the total closing balance for the statement period from the 16 Feb - 27 Feb; = Why is interest applied retrospectively? This is a newly opened card, surely the 'old rules' won't apply.

        (3) the entire balance owing from the 28 Feb - XX Mar; = point (1) has the entire balance already.

        (4) the interest charged on the total balance owing on the statement period from 28 Feb - XX Mar, which will have been charged on any balance as at 13 Mar. = This is the Payment Due period. Again, why is interest applied retrospectively?

        • 

          MrGarciaA on 19/03/2024 - 08:31

          @sky blu: Before December 2018, if you failed to pay your entire closing balance off by the due date, you would be charged interest for that entire period. To put it a bit more simply, it meant that you still incurred interest and that banks would calculate interest from the statement start date, regardless of whether or not you were in an interest free period or not. But they would waive the interest incurred if you managed to pay your balance off in full by the due date i.e. you werent charged the interest incurred if you paid your balance off in full. This is what is meant by interest being incurred "retrospectively".

          But after the ruling, it appears that banks can no longer calculate interest if they are advertising to customers "interest free periods" because it's not technically interest free perse, but rather interest waived.

          So regarding (2) in your comment - I think that's what Trapper was trying to highlight: that post-2018, interest is only incurred from the due date onwards, rather than from the start of the statement period.

          Regarding (4): if you fail to pay your entire statement balance by the due date (13 Mar in OP's case), then you immediately lose your interest free period from the 13 Mar onwards. Therefore, the bank is allowed to calculate interest on any opening balance as at 13 Mar and charge it to your next statement. You must then pay off the entire balance owing and any interest incurred and charged over the period from 13 Mar (your previous due date where you failed to pay off your previous statement in full) and the end of the statement date. And you must pay the balance owing and the interest by the new due date in order to regain your interest free period for the next period.

          • 

            sky blu on 19/03/2024 - 13:35

            @MrGarciaA: Geesus you have a way of lengthening sentences and the compulsive need to over explain.

            Careful you may trip over yourself.

            Fact of the matter is your original comment provided the wrong information to the OP.

            You basically advised that OP

            will be hit with two interest charges: one covering your statement for 16 Feb - 27 Feb AND one covering your statement from 28 Feb - XX Mar.

            Your loooooong sentences do not apply in OP's scenario.

            And then

            You must then pay off the entire balance owing and any interest incurred and charged over the period from 13 Mar

            Yeah no shit Sherlock. I asked why is interest charged retrospectively like you first advised in (4), and you just changed it to something else. Which this time, you are correct. Finally guessed it right, young padawan.

            • 

              MrGarciaA on 19/03/2024 - 13:59

              -1

              @sky blu: I didnt incorrectly advise OP: OP will get charged interest for balance on the statement period for 16 Feb - 27 Feb. OP's due date was 13 Mar where they had to pay back $8k.

              The interest charged from 13 Mar to 15 Mar was on the balance of $8k which is the interest applicable on the balance for the statement period for 16 Feb - 27 Feb.

              If the OP made any purchases post 13 Mar, then they will also incur interest because they lost their interest free period.

              So there are two interest payments: one for the $8k that wasnt paid by 13 Mar, and one for any purchases made since 13 Mar.

      • 

        trapper on 18/03/2024 - 17:23

        It's not bad or incorrect information, just outdated.

        Haha, seriously? Outdated info is bad and incorrect info.

        Nobody's interested in how it operated back in 2018. (assuming it even changed then)