Changes to credit card interest calculations
How are credit card interest calculations changing?
From your December 2018 statement, we will no longer backdate your credit card interest.
This means that if you do not pay your Closing Balance by the Statement Due Date, we will only charge interest from the day after.
When is the change happening?
We will be making this change from December 2018.
What do I have to do?
There is nothing for you to do. This change will happen automatically and will take effect from your December 2018 statement onwards.
What does it mean for you?
The answer is different for every customer and depends on how you currently use your credit card:
- I usually pay off the full Closing balance of my credit card each month
If you already pay off the Closing Balance each month, then you won’t be affected by this change. You will continue to pay no interest on your purchases.
- Sometimes I don’t pay off the full Closing Balance of my credit card each month
In the months that you pay off the full Closing Balance by the Statement Due Date, you won’t notice a change. However, in the months that you don’t make the full payment, this change will affect you – in a good way. That’s because interest will now be calculated from the day after the Statement Due Date on the Closing Balance, meaning that you will pay less interest.
Does this change impact the interest rate on my card?
No, this change impacts how the interest rate is calculated, not the actual interest rate for your card.
What is my Closing Balance?
Your Closing Balance is the outstanding amount you have owing on your card on your Statement Due Date.