Clearing your balance
Clearing your balance
This page explains the interest charges which could apply when clearing your balance.
Residual interest. What’s that all about?
There’s a handy example below to illustrate what interest charges might apply when clearing your balance.
Here’s an example1
This is Kate. She hasn’t used her credit card in over a month so, when her latest statement arrives, she decides to pay off her outstanding balance.
The amount shown on Kate’s statement is £2198.09. This includes all interest charged up until the date the statement was produced, but not the interest that accumulates after that date. Interest is charged daily.
Kate makes a payment of £2198.09 using her debit card.
Kate’s next statement arrives. She hasn’t used her credit card in over two months now.
Kate’s outstanding balance is £18.02, which is the interest charged between her previous statement being produced and the date her last payment reached her account (residual interest).
As the £18.02 is purely interest, we won’t charge further interest on that amount.
Kate makes a payment of £18.02 which then clears her balance in full.
She’ll receive a final statement showing her balance as paid in full.
No further statements will be issued when there's no account activity or balance left to pay.