topic Re: Cap One APR in Credit Cards

Cap One APR

Anonymous — Fri, 17 Feb 2017 22:03:32 GMT

Needing a different outlook/different explanation possibly to understand this.

Here is my question regarding my Cap one Question. My statement for January cut with a balance of 1500. Then in January I made 1150 dollars in payments leaving a balance at the time, before my statement cut at rough 350 dollars. In January I also made an additional 1425 in charges leaving a balance of about 1775(don't do the math on the exact charges and payments just all ball parked it to even numbers lol) but my balance was 1775 on my statement cut date. I then received my statement and occurred about 45 dollars in interest leaving a statement balance of 1815. Day after my balance cut and got my new statement I paid it all off to zero and stayed at zero all month. No use this month for capital one. Speaking with capital one today they informed me that even if I have a zero balance now on my next statement I would see a balance for interest. Didn't seem right to me and since I couldn't understand the person on the phone I gave up.

So am I suppose to have an interest charge for my following statement assuming I don't touch my card? Or was the person just an out sourced CCR who was talking out of their you know what lol

Re: Cap One APR

Anonymous — Sat, 18 Feb 2017 00:58:53 GMT

Credit card companies use an Average Daily Balance calculation. Sort of like paying interest on top of interest. SInce it is daily, you may have incurred some interest on the balance that has not posted yet. This is especially true with cash advances. In my experience, when I have paid interest one month but then paid off the balance in full, I did not incur any additional finance charges. Others may be able to answer your question better. Otherwise, you will have to wait and see when your statement cycles.

Re: Cap One APR

MB2714 — Sat, 18 Feb 2017 00:59:26 GMT

Capital One generally (not always) has a 25 day grace on most purchases from the date of purchase I believe so even if the new statement cuts if the original balance is not paid in full by 25 days from purchase they include interest because they include prior puschases because of their calculation based on the average daily balances. Someone correct me if I explained it wrong

Re: Cap One APR

Anonymous — Sat, 18 Feb 2017 01:34:12 GMT

I knew, obviously, carrying the balance for a billing statement and a half would result in interest. I was taken back with the rep stating even if I paid off my balance I was still receive interest for this statement. I guess I'll find out on march 5

Re: Cap One APR

UncleB — Sat, 18 Feb 2017 07:28:58 GMT

@Anonymous wrote:
I knew, obviously, carrying the balance for a billing statement and a half would result in interest. I was taken back with the rep stating even if I paid off my balance I was still receive interest for this statement. I guess I'll find out on march 5

If you've been carrying a balance it's normal to have one additional interest charge show up the month after you have the account paid in full. American Express refers to this as "trailing interest", and other lenders might have various terms but it's the same thing.

Even though the interest is legit, there have been people on here who have called (or chat) with Capital One and asked for it to be removed, and several have been successful. Note that those who called didn't challenge the interest as being in error (since it's not); it's really just a 'good will' adjustment some have received... YMMV.

Re: Cap One APR

Anonymous — Sat, 18 Feb 2017 19:15:25 GMT

Yup, I got Cap1 to waive just shy of $300 in trailing interest after I paid off a very large balance

Re: Cap One APR

Anonymous — Sat, 18 Feb 2017 19:51:48 GMT

How were you able to do that?

Re: Cap One APR

Anonymous — Sat, 18 Feb 2017 21:14:04 GMT

@Anonymous wrote:
How were you able to do that?

Once the statement cut I went on chat and asked nicely. I didn't think it was going to work and I'd have to call or get transferred to a different chat rep, but the first rep was able to take care of everything for me.

Re: Cap One APR

washpadude — Sat, 18 Feb 2017 23:42:18 GMT

The only way to avoid interest with Cap One is to PIF every month. If you have any balance at all from the previous statement, all new charges acrue interest from the purchase date.

Re: Cap One APR

Anonymous — Sun, 19 Feb 2017 02:44:19 GMT

If you PIF you can get on chat and ask them nicely to reset your grace period.

Re: Cap One APR

Anonymous — Thu, 09 Mar 2017 02:51:02 GMT

Just to update. I did have $1.48 interest charge. Forgot I had used my card for a venmo transfer by accident...but I'll take that.