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I recently started using a credit card. I get the credit card statement by 22nd of every month, and the payment is due by the 1st of next month.

The full amount is automatically debited from my account on the 1st of every month.

Yet, I see there is always interest amount in my credit card statement. My bank says that my credit card is of a type set to "always pay the bills fractionally", and it doesn't matter even if I pay the bill in full.

Is there such a type of credit card? This is from one of the leading banks in Spain.

littleadv
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M K
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2 Answers2

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A lot of credit card companies these days uses what they call "daily interest" where they charge the interest rate for the number of days till you pay off what you spent. This allows them to make more money than the "period billing".

The idea of credit, theoretically, is that there isn't really a day when you can borrow without paying interest - in theory

WasIstDenDass
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Do you withdraw cash from your credit card? That is called a cash advance, and interest is usually started from the day you withdraw it.

Peter K.
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