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Residual interest covers any interest calculated on your credit card balance in the days between your statement being issued and you making a full statement balance payment.
The figures we’ve used are just for illustration.
The amount shown on your statement is £2,198.09. This includes interest chargedIt’s useful to know that interest is calculated daily, then charged on the following statement. up until the date the statement was produced, but not interest that’s accumulated since.
You make a payment of £2,198.09 using your debit card. This will reach your account by the next working day.
By now, you haven’t used your credit card in over two months. The statement balance is £18.02, which accounts for ‘residual interest’ charged between your previous statement being produced and the date your last payment reached your account.
You make a payment of £18.02 which clears your balance.
As the £18.02 is purely interest, we won’t charge further interest. Some lenders might call this a ‘final interest charge’.
You’ll receive a final statement, but this time it’ll show your balance as paid in full.
Statements won’t be issued while there's no balance to pay, or recent account activity.
If you’re paying off your credit card balance in full, you need to know about residual interest.
Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.