credit card whats this???

thegame

im with the aib bank for years now and i got a credit card from them a couple of years back..i got this on my bill today

PURCHASE *FINANCE CH 62.85
PAYMENT PROTECTION P 25.74

does everyone get charged this?? is there anything i can do to get it reduced??

BuffyBot

That's your intrest charge and you must have opted for payment protection insurance when you took out the card.

The interest may be high if you've made a big purchases/large amount of purchases and the payment protection is normally a % out of the outstanding balance on your card.

The good news is that payment protection is optional so you can contact the bank and tell them you no longer require it, and it shouldn't appear on any future bills

thegame

cheers mate.at least i know now.and i made a few purchases on the card the other day.im going to opt out of that payment protection plan

lostinsuperfunk

You should check that you really did opt for the payment protection plan when you took out the card. Some banks have been known to sneak this in without consent. Of course a reputable bank like AIB would never overcharge its customers.

I would also query the separate "purchase finance charge" - maybe this is to do with something else? On my card this description usually refers to foreign currency exchange commission.

BuffyBot

On AIB, it stands for the interest. Certainly does on my card.

And the honest truth is that most people do sign up to Payment Protection when they set up accounts because they don't understand it or don't read the form

Drexl Spivey

Hi all,

On my visa statement i can read "PURCHASE *FINANCE CH"

Does somebody know what this is?

Thank you

BuffyBot

Interest.

That's how it's phrased on my AIB card statement - merging with a similar thread from few weeks back

threebeards

Jeff Bond wrote: »

Hi all,

On my visa statement i can read "PURCHASE *FINANCE CH"

Does somebody know what this is?

Thank you

Would it be insurance on the card?

Drexl Spivey

BuffyBot wrote: »

Interest.

That's how it's phrased on my AIB card statement - merging with a similar thread from few weeks back

thanks.

What is the exact formula to figure out the interest amount?

I want to know if i am being done.

On my statement it says: Minimum payment xxx, and I always pay over the xxx assuming i won't be charged any interests, and yet I am being charged.

watna

but you're minimum payment is only the least the bank require you to pay that month. It can be as low as 2.5% of your total balance. If you don't pay your bill in full every month then you'll have to pay interest at whatever rate the bank have on your card. If you don't want to pay interest pay whatever you purchase off before 30 days. After that,you're paying interest.

Sangre

Purchase finance is the interest charged on the outstanding balance of your purchases. It differs from cash advance interest or balance transfer interest as they are usually a different interest rate than purchases.

dingding

To clarify some of the previous posts, If you do not clear all the outstanding balance on the card, then you pay all the interest on the outstanding balance from the start of the month. :mad:

Drexl Spivey

formula?

cazzy

thegame wrote: »

im with the aib bank for years now and i got a credit card from them a couple of years back..i got this on my bill today

PURCHASE *FINANCE CH 62.85
PAYMENT PROTECTION P 25.74

does everyone get charged this?? is there anything i can do to get it reduced??

Hi - The 25.74 is payment protection insurance which you can opt out of - its pays off your balance if you become ill, redundant etc A charge of 25.74 means your balances must have been €4,290.

(Optional Payment Protection Plan - This provides valuable insurance cover if you are unable to work due to involuntary unemployment, disability (as a result of accident or sickness), critical illness, or loss of life. In the event of an involuntary unemployment or disability claim, the plan will pay 10% of the balance as at your last statement, per month until a) you return to work, b) the balance is cleared or c) a maximum of 12 monthly benefits has been paid. In the event of a critical illness or loss of life claim the plan will clear your outstanding balance less arrears up to a maximum of EUR15,500. It costs just EUR0.60 for every EUR100 outstanding on your credit card statement per month. (Subject to terms and conditions).

The € 62.85 is your interest charged. This approximates a rate of maximum 17 or 18% depending on whether you paid the full amount in the previous statement or not. (If you didnt you loose your 25 days interest free period which could mean an additional interest charge and a lower APR)

€ 62.85 * 12 = €754 / €4,290 bal = 17.5% interest rate approx maximum.

somedeed

Hi guys,

Another question on the Credit Card statements, on mine i can see "PURCHASE *FINANCE CH" and also "CASH * FINANCE CHAR" straight after that usually after i bought something from Amazon.com.

However the cash charge was higher for something i bought that cost less than another amazon purchase where i recieved these charges. I've setup online banking to pay the minimum amount each month along with whatever i can payoff along the way as well but i still always see these charges.

Also maybe of note my CC is less than a year old, isn't there supposed to be no interest charged in the first year? (i may have that wrong)

Thanks

cazzy

Cash finance charge is interest on cash advance transactions, ie interest on cash that you have taken out of an ATM/bank. Usually it is a higher rate than the APR on spend made in shops. Think the amazon thing is just a coincident.


Some credit cards have an interest free period attached to it to attract customers. Usually it is 6 months but can be 1 year - not all cards have this though so check the terms and conditions that came with your credit card. Your interest rate will also be printed on your cc statement.