Interest accrues daily against all completed transactions and would stop accruing once the outstanding balance is cleared in full. Any interest accrued in that period is then applied on your statement date.
For example, with an APR of 37.15%, the average interest per £1 could be £2.67 per statement if balances are not cleared on time. Additionally, the interest shown on your statement reflects the accrued amount since your last repayment.
Please note that we do have a 35 day interest free period for those opting to pay their statement balance in full each month.
This interest-free period allows you to avoid any accrued interest as long as you clear your balance by the repayment date. By consistently paying in full, you can significantly reduce your overall interest costs.
To make use of this you would just need to both change your recurring payment amount to the full statement balance in the App and ensure your statement balance is paid before your repayment date or when it is automatically charged on your chosen date.
In order to change your monthly repayment please follow the instructions below:
Go to the "Repay" tab of the app
Tap "Edit monthly repayment"
On the right hand side of the "Amount" row, tap the pencil icon
Enter the amount you would prefer to pay (statement balance), tap save and then confirm.
This will be in effect after your next statement is issued.
FAQs About Interest Charges
Why Was Interest Charged Even Though I Paid My Balance in Full? If your full payment is made after the repayment date, interest may still be applied to your account on the next statement.How Can I Be Sure to Avoid Interest on Future Statements? Clear your statement balances on or before the repayment date to ensure that no interest is charged, provided no other purchases were made.Will New Purchases Be Interest-Free If I Clear My Current Balance? If you pay your current balance fully and maintain a zero balance, new purchases will not incur interest as long as you pay them in full by the next repayment date.