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Capital One Interest Charge During 0% Period

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kberly69
Frequent Contributor

Capital One Interest Charge During 0% Period

I have a Capital One QS that had 0% interest for 14 months which ended in February. My February statement shows 0% interest charged and a balance of around $5K. I paid the balance in full by the due date of March 9. 

My closing date was yesterday and I checked my account to see an interest charge of $25 and change. I cannot wrap my head around this. If I was in a period of 0% interest, then paid the balance in full by the next due date (when interest was in effect) how can I owe interest?

 

I chatted with a rep who explained it as a calculation on an average balance and I would have to pay in full two months in a row to see no interest charged. I told her I could not comprehend that how interest could be charged during a 0% interest period. She came back and waived the interest charge but what am I missing here? Zero should be zero, right? 

 


CH7 BK Discharged 10/16
Oct/Nov 2016: EQ 632 TU 532 EX 573
Feb 2017: EQ 695 TU 673 EX 670
March 2017 EQ 702 TU 676 EX 673
April 2017 EX 683 (TU & EQ unknown)
May 2017 EQ 695 TU 685 EX 693
Feb 2018 EQ 704 TU 687 EX 694

9/24/20: 4 years from discharge FICO 8: EQ 751 EX 765 TU 766 FICO 9 EQ 814 EX 804 TU 821
Message 1 of 11
10 REPLIES 10
Anonymous
Not applicable

Re: Capital One Interest Charge During 0% Period

What you are learning is something I learned the hardway. When carrying a balance interest begins on the first day. Your last day of 0% triggered the interest beginning charge. There was a balance on the account. Thus, interest began.  Be glad the rep W/O the interest.

Message 2 of 11
UpperNwGuy
Valued Contributor

Re: Capital One Interest Charge During 0% Period

For balance transfers, I always pay them off one month before the 0% interest period ends -- just to avoid that situation.

Daily Carry: PenFed Power Cash • NFCU Flagship • NFCU More Rewards • Chase Freedom
Sock Drawer: PenFed Promise • NFCU cashRewards • Chase Sapphire Preferred • Chase Freedom Unlimited • United Explorer • UNFCU Azure
Message 3 of 11
kberly69
Frequent Contributor

Re: Capital One Interest Charge During 0% Period


@Anonymouswrote:

What you are learning is something I learned the hardway. When carrying a balance interest begins on the first day. Your last day of 0% triggered the interest beginning charge. There was a balance on the account. Thus, interest began.  Be glad the rep W/O the interest.


That part I get- I just don't understand how they could go back and say 0% wasn't 0% anymore. In my eyes, I paid in full for the period I was to be charged interest so I shouldn't have owed any. I am for sure grateful it got removed! 


CH7 BK Discharged 10/16
Oct/Nov 2016: EQ 632 TU 532 EX 573
Feb 2017: EQ 695 TU 673 EX 670
March 2017 EQ 702 TU 676 EX 673
April 2017 EX 683 (TU & EQ unknown)
May 2017 EQ 695 TU 685 EX 693
Feb 2018 EQ 704 TU 687 EX 694

9/24/20: 4 years from discharge FICO 8: EQ 751 EX 765 TU 766 FICO 9 EQ 814 EX 804 TU 821
Message 4 of 11
kberly69
Frequent Contributor

Re: Capital One Interest Charge During 0% Period

I feel like that's the reality of it- it's really 13 months at 0%, not 14. That's a little shady, imo.


@UpperNwGuywrote:

For balance transfers, I always pay them off one month before the 0% interest period ends -- just to avoid that situation.


 


CH7 BK Discharged 10/16
Oct/Nov 2016: EQ 632 TU 532 EX 573
Feb 2017: EQ 695 TU 673 EX 670
March 2017 EQ 702 TU 676 EX 673
April 2017 EX 683 (TU & EQ unknown)
May 2017 EQ 695 TU 685 EX 693
Feb 2018 EQ 704 TU 687 EX 694

9/24/20: 4 years from discharge FICO 8: EQ 751 EX 765 TU 766 FICO 9 EQ 814 EX 804 TU 821
Message 5 of 11
Anonymous
Not applicable

Re: Capital One Interest Charge During 0% Period

The rep was correct and yes, might have been 13 months not 14.  In this case, you would have been fine paying at 11 or 12 months.

Message 6 of 11
Anonymous
Not applicable

Re: Capital One Interest Charge During 0% Period

What was the FIRST DAY of the 14 month 0% interest period?

 

Give us the exact day, month, year when it started.

 

$25 interest on a $5000 balance is 0.5% and if the APR on that card is 25% (I have no idea) with a daily interest accumulation it appears you were charged 8-9 days of interest.

 

Assuming your interest period ended exactly on February 28, 2018, then the interest charge is correct and you did poor math planning.

Message 7 of 11
Dalmus
Valued Contributor

Re: Capital One Interest Charge During 0% Period


@Anonymouswrote:

What was the FIRST DAY of the 14 month 0% interest period?

 

Give us the exact day, month, year when it started.

 

$25 interest on a $5000 balance is 0.5% and if the APR on that card is 25% (I have no idea) with a daily interest accumulation it appears you were charged 8-9 days of interest.

 

Assuming your interest period ended exactly on February 28, 2018, then the interest charge is correct and you did poor math planning.


 This is exactly what I was thinking.   I'm sure a lot of people don't pay attention to the actual end date of the 0% period, because it most likely won't match your statement due date.   You DID get 14 months at 0%, but not necessarily 14 statements.

 

That's one of the reasons I note the exact expiration date of a BT on my spreadsheet.

NFCU MR: $25K | Venture: $21K | Amex ED: $18K | NFCU CR: $18K | Amex BCE: $15K | IT #1: $17.5K | PNC Core: $15K | PPMC:  $12K | Wells Fargo: $11K | Savor: 12K | Cap1 QS: $8.5K | Barclays Rewards: $7.75K | IT #2: $7.3K | MLife: $9.5K | Sportsman's Guide: $8.7K | PenFed PR: $5.5K | Elan Plat: $2.3K | TRV: $3.6K | BotW: $3K


Current FICO 8 Scores: EQ: 828| TU: 805 | EX: 814


Message 8 of 11
Spotsy
Frequent Contributor

Re: Capital One Interest Charge During 0% Period

+1 @Dalmus and @ABCD2199

 

The end of the 0% might not align with the statement due date. The Devil is in the details.  The good thing with CO is the interest is not usually retro active like store cards or specialty cards. I usually call into the CSR before the promo expires to get the exact date it ends and do an additional payment to ensure it is at zero on that date. CO is also pretty good about stating what to pay to avoid interest if you use a card that is also carrying a promo balance.

FICO 8: TU:831 / EQ:837 / EX:827 as of 12/25/2023
Message 9 of 11
UpperNwGuy
Valued Contributor

Re: Capital One Interest Charge During 0% Period

Another good rule is never to use a balance transfer card for everyday transactions -- at least not until a month or two has passed following the full payoff of the transferred balance.  Sometimes funny things happen with the interest charges, such as losing the 30 day grace period for purchases.

 

 

Daily Carry: PenFed Power Cash • NFCU Flagship • NFCU More Rewards • Chase Freedom
Sock Drawer: PenFed Promise • NFCU cashRewards • Chase Sapphire Preferred • Chase Freedom Unlimited • United Explorer • UNFCU Azure
Message 10 of 11
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