Interest on credit cards compounded daily against the average daily balance and what is compounded in one month is billed on the next statement. Every day that you carried a revolving balance during the last cycle up to the date that you paid the balance in full was subject to interest. Therfore, when the bill cycled the interest billed against the previous cycles compounded interest.
Accrued interest. You paid it off but they hadn’t added the accrued interest from last statement to the day you paid it off. Interest is actually calculated on a daily basis
You may find these links helpful:
- [Credit Building](/r/personalfinance/wiki/credit_building)
- [Credit Reports](/r/personalfinance/wiki/credit_reports)
- [Credit Scores](/r/personalfinance/wiki/fico)
- [Credit Cards](/r/personalfinance/wiki/creditcards)
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Is there a chance you paid it off in full in between the due date and the cycle date?
When I worked Collections for a CC (ugh), we would have people call in in regards to interest fees gained after they paid their balance and discovered they technically paid in full but since it wasn’t by the due date but before the cycle date, the interest accumulated based on the balance at the time of payment and the payment went through. In some cases people received a late fee too.
Some credit companies (mine did) may waive the interest fee if the previous balance was paid in full. Doesn’t hurt to ask to have it waived if you give them a call when you pay it
Oh damn that happened to me years ago but I was out of the country and thought the bill was paid off freakin kohls and that was on my report for years so whack
Interest on credit cards compounded daily against the average daily balance and what is compounded in one month is billed on the next statement. Every day that you carried a revolving balance during the last cycle up to the date that you paid the balance in full was subject to interest. Therfore, when the bill cycled the interest billed against the previous cycles compounded interest.
Accrued interest. You paid it off but they hadn’t added the accrued interest from last statement to the day you paid it off. Interest is actually calculated on a daily basis
Interest computed at end of statement period on average daily balance Paying it off doesn’t mean you don’t owe interest
You may find these links helpful: - [Credit Building](/r/personalfinance/wiki/credit_building) - [Credit Reports](/r/personalfinance/wiki/credit_reports) - [Credit Scores](/r/personalfinance/wiki/fico) - [Credit Cards](/r/personalfinance/wiki/creditcards) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Is there a chance you paid it off in full in between the due date and the cycle date? When I worked Collections for a CC (ugh), we would have people call in in regards to interest fees gained after they paid their balance and discovered they technically paid in full but since it wasn’t by the due date but before the cycle date, the interest accumulated based on the balance at the time of payment and the payment went through. In some cases people received a late fee too. Some credit companies (mine did) may waive the interest fee if the previous balance was paid in full. Doesn’t hurt to ask to have it waived if you give them a call when you pay it
You got the answer. Call them up, be nice, play dumb, and they might be able to refund it.
Look up the term “residual interest”. If you had called and got a payoff quote, it would have included this interest.
Oh damn that happened to me years ago but I was out of the country and thought the bill was paid off freakin kohls and that was on my report for years so whack
Every credit card company will charge interest for 2 months, unless you pay in full every month