Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
purchase interest and cash interest on unused credit card?
I have a credit card with vanquis that I have been paying off slowly but surely, the only thing is that I cant understand is why I am getting charged purchase interested and cash interest? I haven't used the card since January this year, there is still a balance on it but I haven't spent on it at all since January. Why am I still getting charged?
2 Answers
- AlexLv 79 years agoFavorite Answer
The interest isn't a one-time charge when you make a purchase; most credit cards charge interest when you carry a balance. Basically, they've loaned you money and will continue charging interest until you pay them back (plus interest/fees). The interest is a percentage rate, so the more you pay off, the lower your balance, the less ($) interest will be added to the account each month. Linked below is a credit card calculator that can help you figure out when the balance will be paid or how much you need to pay each month to pay it off by a certain date.
- ?Lv 79 years ago
Every month when they send you a bill you have the opportunity to pay the balance off in full or make a smaller payment and get charged interest.
That is how it works if you don't pay it off in full every month.
Part of your balance was generated by buying merchandise and part was from a cash advance. Those two things have different interest rates. So when you still owe money on the card and don't pay it off in full then they add finance charges to the balance and in your case it is for two separate kind of charges.
Try and make larger payments so that the balance shrinks faster and they can't charge you so much interest every month.