Interest Charged on Paid off Card?? Cap 1

[Anonymous]

Hello Forum Members,

I am new to the forum as a member but I have been reading it for quite some time. So here's the story...

I paid off my Cap 1 card in full one week before the statment cut. Previously I had been carrying a balance for a couple of months. My statement cuts on the 7th of the month and the statment showed a balance of around 18.00 dollars in interest charges.  

1. What is the interest coming from considering the card is paid in full?

Also Cap 1 reports to the CRA's on the 7th of the month as well for my account. I was hoping the zero balance would show up on my credit reports as I am applying for a car lease this week and I wanted to max out my credit score so I can get the best rate.

2. Considering my statment showed a balance I assume that balance is going to be reported to the CRA's despite my scheduling a payment that should clear overnight. Is there any way I can get Cap 1 to re-report my balance or just any short cut in general that can help me to correct this issue by the end of the week? Will the 18 dollar balance on my credit report for that one account cause any major difference?

Thanks so much!!

[Anonymous]

Interest is calculated on the average daily balance on the account. You carried a balance for 3 weeks and the interest resulted from that. I seriously doubt $18 on a card will make any difference in your score one way or the other. Even with a $300 limit, that would only be 6% utilization so you’d be in the ideal UTI bracket. Plus you could just pay the $18 and tell the loan officer that it’s paid, but I don’t think anyone will care about that amount on a card. If $18 was going to make or break your chances, the loan officer wouldn’t be returning your calls.

[Anonymous]

Trailing interest.  Read the cc terms or do a google for technical definition.

But since you carried balance and then paid off, you still have to pay the interest on that balance.

It just hits your account after your payment and next billing statement.

$18 not going to break a deal.

If anything, having $0 balance reported on all cards (assuming you have more than one)

will actually give you a credit score hit. 

Best to leave a small balance on one card under 8.9% of its limit = utilization 

AZEO

No worries. In fact, depending on your total credit profile, you might have given yourself

a boost and better chance with your score(s)