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Cap1 interest charge after balance paid off??

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Cap1 interest charge after balance paid off??

Hello All & Happy New Year,

 

I thought that if you paid a balance off before the next billing cycle that no additional interest was charged? My case; I added my daughter as an authorized user & she racked up over a 1k balance in 7 months. She was only making minimum payments for the last 3 months before she was making at least triple minimum payments.Come 1/1/17, I decided she wasn't handling the acct. as I had tried to teach her & explained her mistakes. The limited experience helped qualify her for her own Cap1 card, so I removed her as a user. I paid off the balance on 1/3/2017, payment was due on 1/14/2017. My online & mobile dash board showed a $0 balance until today, a new billing cycle but says I own $8.81 in interest Smiley Surprised 

 

I thought since I paid the entire balance before a new billing cycle that interest charges stopped? I know it is a small charge but; do I really owe it? Thought I would ask here before I call. At the moment I'm less than pleased with Cap1 over my other 2 rebuilder cards, they won't combine them & my old QS1 is due to be charged a AF next month. I don't want to get annoyed & just out right close the cards but I don't want to pay an AF on a card that I really don't use. I keep them to help my utility as I'm carrying a balance on another card with 0%.

 

Thanks for your insights in advance.

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Valued Contributor

Re: Cap1 interest charge after balance paid off??

Unfortunately for you, because the balance had already been carried for months, interest was already accruing.

 

The rule you cite about paying off a balance in full applies only if you pay it off during the grace period, immediately after it first appears, and before interest has begun to be applied.

Message 2 of 13
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New Member

Re: Cap1 interest charge after balance paid off??

Thanks Gunnar for your reply, I learned something new. Glad that it is a cheap lesson Smiley Wink I'll just pay it, relieved that I don't have to call Cap1 until I request my AF be waved.

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Valued Contributor

Re: Cap1 interest charge after balance paid off??

Do your other Cap1 cards have balance? How old are they?
Message 4 of 13
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Re: Cap1 interest charge after balance paid off??


@rmduhon wrote:
Do your other Cap1 cards have balance? How old are they?

My QS that was PC'd from a platinum has a new balance of $137 that I will PIF & my QS1 has a $0 bal., just paid my holiday charges of $1244 ON 1/3/2017. Both of those cards were opened 6/2015. Unfortunately, I think Cap1 has tighten restrictions on combining & CLI's recently. My most recent CLI requests have been denied for too many inquiries and combination of accts for reasons I don't get. I spoke with customer service rep & they can't give me any reason or hope.Smiley Sad Actually ended the chat by saying I can apply for another card but makes no sense, they would pull  3 CR's adding to my inquiries.
 

Message 5 of 13
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Valued Contributor

Re: Cap1 interest charge after balance paid off??

They may have. I know in November hubby combined 2 of his. But then they've changed how often you can apply for new cards and are rolling out graduation of their secured cards so you never know. Hopefully you can combine them soon.
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Re: Cap1 interest charge after balance paid off??


@rmduhon wrote:
They may have. I know in November hubby combined 2 of his. But then they've changed how often you can apply for new cards and are rolling out graduation of their secured cards so you never know. Hopefully you can combine them soon.

Thank for the words of encouragement Smiley Happy I'll call again in a few weeks & try to get AF on QS1 waved, if they aren't willing I'll just close it. No need for 3 cards from Cap1, would love to combine them into my newest QS but Cap1 says no. I'll probably end up SDing Capt1 Smiley Frustrated

Message 7 of 13
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Valued Contributor

Re: Cap1 interest charge after balance paid off??

I know what you mean about so many Cap1 cards. Hubby still has 2 (a QS pc'd from a Platinum and a secured card) and I have 4 (a QS1, 2 QS PC'd from Platinums, and a secured card). I'm hoping they haven't changed combining cards too much if they have changed it
Message 8 of 13
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Re: Cap1 interest charge after balance paid off??


@Gunnar419 wrote:

Unfortunately for you, because the balance had already been carried for months, interest was already accruing.

 

The rule you cite about paying off a balance in full applies only if you pay it off during the grace period, immediately after it first appears, and before interest has begun to be applied.


+1 

 

Capital One refers to this as 'residual interest', while Amex uses the term 'trailing interest'.

 

From https://www.capitalone.com/credit-cards/blog/interest-charges/:

 


Residual interest

Residual interest is interest that’s charged between when a credit card bill is sent and when your payment is received.3 If you pay your balance in full every month, then all your purchases get grace and you don’t have to worry about residual interest.

If you carry a revolving balance—meaning that you don’t pay your entire monthly balance—you’ll be charged residual interest on the balance you carried over from the previous month, even if you pay it in full that month. Plus, since residual interest is accumulating after your statement is sent, you won’t see it on the bill. In fact, even if you pay that statement in full, you might still owe some residual interest.

Remember, if you want to avoid interest altogether, the simple solution is to pay off your balance in full each month.


 

Message 9 of 13
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Re: Cap1 interest charge after balance paid off??

OP, yes, this used to be a thing with Capital One. I did nearly 10 short cycle balance transfers, move an amount just below 3 months worth of autopayment, first month no interest, second month some interest, last month (go to zero) and no interest in that last month, as long as the ending balance was zero.

 

With my January statement, with one of these going to zero, $1.50 interest added.  So they have changed their interest calculation to be more like other banks to pick up trailing interest in the last month. 

 

Yes, you owe the amount. I paid mine as soon as I saw it.

 

The game is up Smiley Happy

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