Credit card question...have I been assuming wrong re. statement & interest?

aardvark said:
but you say you always pay off the card at the end of the month??

either you do or you don't - i don't see how you could miss a payment???
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As another poster said, he could be buying things that accrue interest from the day they are purchased. I know if i get cash off mine it starts straight away.
 
I really don't see how you can charge your employer for interest you've incurred on your credit card. It's not an expense incurred for the business.

I also don't get how this interest is arising, but without seeing the statements it's anyone's guess.
 
GinG said:
If I am honest I track all expenses and purchases on a spreadsheet and go off that instead of the statement
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Are you actually paying off the full statement amount on the card then? Or just using your spreadsheet to calculate a total which is different from the statement amount?

If you pay it online, you'll usually get 3 options for paying:
1 - Pay the minimum amount
2 - Pay the full statement balance
3 - Pay another amount

If you're using anything other than option 2, you're not paying off the full balance.
 
GinG said:
although when I was over in Dusseldorf the other month I did take cash out the wall, it may well be this!
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It will almost certainly be this.

In general, you're correct. As others have said, if you pay off the balance in full each month you won't pay any interest.

The exception to the rule is "cash advances". Cash advances aren't just when you take money from an ATM but can be when you buy Traveller's Cheques and foreign currency. Why you may not have "gambled", buying a lottery ticket would also incur fees.

Another reason why the interest may seem dispropriate to how much you took out in cash is that they can sometimes be charged at a higher rate of interest.

At the same time read up on what counts as "cash advances" and avoid making transactions like that in the future. You've done better than some people by catching it so soon and keeping on top of it! :)

GinG said:
If I am honest I track all expenses and purchases on a spreadsheet and go off that instead of the statement
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That's fine, it means you'll pay off items before they're even due and you will likely avoid all interest, but you can also set up a direct debit for the "full amount" on the statement and (at least with my cards) it will only take the difference required to pay off the full amount if you have paid off some of it earlier in the month. However, you might want to double check that is the case with your card.

Also, it's easy it just say "set up a direct debit to pay in full at the end of each statement" but I know one reason I like to pay things off ASAP is that it means I don't accidentally spend the money before it's due a month later.
 
Vonhelmet said:
I really don't see how you can charge your employer for interest you've incurred on your credit card. It's not an expense incurred for the business. ...
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My employer gives everyone the option to apply for a corporate American Express card, and whilst they won't pay for interest caused by late payments if expenses weren't submitted for reimbursement soon enough, they will pay for interest caused by cash advances during an international business trip. It sounds like the Dusseldorf cash advance was a justified expense to the company.
 
If you are spending lots on business related stuff and clearing your balance (eventually :)), you should really get a cashback credit card. 1% on everything you buy soon mounts up.
 
GinG said:
Thanks Dowie,

As I have spotted it this month I am expensing the charges and paying off in full (do it as a manual payment), if next month I get charged more interest I shall phone up and get them to confirm what it actually is causing the interest...no gambling(!) although when I was over in Dusseldorf the other month I did take cash out the wall, it may well be this!
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It will be the cash withdrawal, they receive interest from the moment of the withdrawal until it is paid off
 
Thanks all.

Yes the interest will be expensed, will take note in the future re. cash advances and withdrawals etc.
 
Yeah only way to get an interest charge is a cash withdrawal (some transactions can be classed as cash, like if you paid into a betting system). Or you missed a payment.

Not sure why some people seem scared of credit cards. I use mine for everything except cash
 
Might want to check the company's expense policy before claiming for interest, its almost certainly not covered.

Trying that sort of thing on at my workplace would get you a disciplinary.
 
weringo said:
Might want to check the company's expense policy before claiming for interest, its almost certainly not covered.

Trying that sort of thing on at my workplace would get you a disciplinary.
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If it's a business expense that couldn't practically be avoided (a lot of companies don't have the facilities for giving out cash advances directly), I don't see why the interest incurred as a result of drawing out cash would not be covered. Granted it's probably a lot more for the OP now that they've let it accrue for a few months but in principle I don't see any issue with it (as someone who deals with staff expenses).
 
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