Paying off your credit card
You will usually receive a credit card statement on a monthly basis. This will show your credit balance as well as any transactions on your card since your last statement.
If you want to avoid paying any interest you can choose to pay back the balance in full by the date indicated on your statement (anywhere between 14 and 28 days from the date the statement was issued).
It is always sensible to make any large purchases immediately after a statement has been issued as this gives you a longer period within which to pay the money back. You will have the time between the purchase being made and the next statement being issued, plus the time between the next statement being issued and the next payment date, all interest free.
If you can't pay back the balance in full by the date indicated on the statement you will be charged interest on the outstanding balance at the advertised interest rate (APR). There will usually be a minimum amount that you have to pay back each month. If you do not pay back the minimum amount by the due date, you may be charged a late payment fee.
Think carefully when deciding how to pay off your credit card. One of the biggest mistakes is continually to repay only the minimum payment. By paying back an extra few pounds each month to your credit balance, you could reduce your interest payment period significantly.
Credit card types:
Please note: TheMoneyFactor.co.uk makes every effort to ensure that all our information and the results from our calculators are accurate and current. However, we cannot guarantee 100% accuracy and cannot be held liable for any errors.
Nothing within TheMoneyFactor.co.uk website is, or shall be deemed to constitute, financial or other advice or a recommendation to purchase any product or service. Any and all information provided within TheMoneyFactor.co.uk website is for general information purposes only.
TheMoneyFactor.co.uk advises that you always check with the finance service provider before signing any agreement or purchasing any product.
| 
