I have a Capital One Quicksilver card. Normally, I pay the full balance every month, but last month I had put a deposit on the card for $500 that I later had refurned. I incorrectly calculated the difference, so I had about a $50 balance on the card at the end of the month. When I received my statement next month, I noticed there was a $7.07 interest charge. This seemed odd to me as $7 on a $50 balance would be a 20+% interest rate for one month.
I called Capital One and asked why I had to pay $7 on a $50 balance? They immediately offered to refund the money, which also seemed odd to me, but I was informed that when calculating my interest rate used the average daily balance and not the remaining balance calculate my interest. I was just wondering if this was a typical practice for credit cards? Thanks for any help.
