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CAUTION: Avoid a penalty for paying your CC early

Posted by mozzie4 mozzie4
Message 1 of 2 295 Views

Hi Bankwest Members. This may also apply to other Banks so be careful.

 

I recently got into the habit of paying a small amount off my Credit Card as close to receipt of my eStatement as possible. This reduced the amount I had to pay by the Due Date. I started to make the payments earlier, for example to avoid a weekend I'd make payment on the Friday.

I was recently made aware, by having Purchase Interest charged, that I had been paying the money before the START Date for payments, i.e. one day EARLY.  This doesn't count towards the payment period so the payment is just 'wasted'.  I don't know whether it's a ploy by the Bank to get extra interest but I certainly wasn't aware.

I made a payment on 25 July.....

Notification of eStatement received 27 July

HINT:   Check the "Period"  mine says 26 Jun 19 - 26 Jul 19   To be safe I'd make no payment until 27 July.

 

Then Pay "closing Balance owing".  Less any amounts paid after the "Period". end date.

 

There's a lot to be said for using a Branch where a second pair of eyes is there to check your payment!

 

The Bank staff were good and reversed out the payment. I had to pay an extra penalty by paying the full amount 10 days early to avoid any more interest charges.

 

A trap for the not so young

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Re: CAUTION: Avoid a penalty for paying your CC early

Posted by MegB MegB
Message 2 of 2 195 Views

Great pick up @mozzie4 you're correct. To avoid purchase interest being charged, customers need to pay the full "closing balance owing" between the statement issue date and the due date. 

We do have the ability to create a direct debit for the closing balance owing on the due date to prevent any interest being charged. 

Our Online Messaging Team can assist with creating this through your online banking. Just hit the 'Message us now' button from the bottom of your online banking window, or the 'Ask us' button at the bottom of the app menu. 

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