Credit Card Interest Rate Calculation
Hi,
Anyone has clue how banks calculate CC debit interest that appears in the CC monthly statement?
My CC is a QNB, I have a balance of QR 3000 (accumulated since Sep 2008) on that card (which was stopped in Aug/Sep 2007 by the bank for an unknown reason).
I was promised to cancel the balance on that CC and the CC itself when visited the collection section last January as the above amount accumulated on interest (not purchases I made) since I made last payment in Sep 2008. However, I went to card section (in C ring road branch) yesterday and was told that I have to pay 2050 to cancel the card!
To make things worst the employee I spoke to in January has left the bank.
If you have similar experience or know the right person's (tel/email) to contact please let us share.
Basic rule is one plus i to the powder n
i is interest rate by digit not percent and n could be days, months or years
You better pay off f not your interest will be morethan 3000 by the time you settled
Thanks Shyams for your prompt response, I will do that.
Anybody has similar experience, I just would like to know if I have to pay for a card that was can can canceled by bank in Sep 2007 and was charged twice for card renewal fee (in Nov 2007 & Nov 2008) actually even getting the cards.
be something to do with various reasons like.
your previous statement, Credit shield subscription charge, bank fee etc.. so could be either of them. till date i could transparently make it out with my bank Doha Bank... contact your bank for not complicated self and demand a explanation. use the online bank mail facility for an explanation.
Thanks Shyams,
I will give a real example from one of the statements I have.
previous balance=799.20
payments=0
Late Payment Fee=150
Over Due Fee=50
I would like to know what formula the bank used to charge me debit interest of QR 17.92 based on the above figures. The closing balance on that statement for that month was: 799.20+150+50+17.92= 1,017.12
here how the CC works in most of the bank unless you took in any special offer....
lets say u start with 0 balance with credit balance of 10,000. and your billing cycle is 5th of every month.
in the first month (eg. Jan) you spent 5000, and your cc statement arrives on 5th of Feb to pay 5000 before end of Feb. and also you will note you need to pay atleast ) minimum 250 QR - which is 5% of the outstanding money 5000 QR. if you dont pay even 250, either bank debits it from your account hooked up with CC or add the 250 over 5000 for the next month so is 5250+any amt u will spend during FEB....
if you keep clearing the min amount every month, this means you are actually paying the interest and principle remains the same+late fee fine over that....
My suggestion. clear your CC outstanding every month and calculate your spending. this is how I am able to keep control of my CC. best wishes.