Capital One Small print - confused!!

qfis1

Just applied for a Capital One card online last weekend, filled in all the details for balance transfers from 3 other cards - got my forms to sign in the post today. Also got a form to fill in with details of any balance transfers I'd like to make!

Can't find a mention of my credit limit though.

I notice in their Agreement they have a paragraph 'Total Charge for Credit; At the time the agreement is made: £1037.77
Comprising interest in the sum of : £1037.77'
Before I ring them (and certainly before I sign for anything) does anyone know how or where they get this figure from?

grumbler

You can find explanation of 'Total Charge for Credit' in this thread, for example:

Credit Card Agreement...Please help!


However, £1037.77 amount looks too harsh for me . In my understanding this is equivalent to about 200% APR.

YorkshireBoy

From the Cap One T&C's...

"In calculating the APR and Total Charge for Credit we are required by law to assume that: the credit limit will be £1,500 unless we know the credit limit when this agreement is made, in which case we will use that credit limit"

The example they give in the T&C's shows £116.17, which is the interest charged if £1,500 is spent on the card and then paid back in 12 equal monthly instalments.

So, if the OP goes out and blows their credit limit on one purchase, then £1037.77 is the amount of interest they'll pay if they then clear the balance in 12 equal monthly instalments.


Edit: Many of the "details" are not easily seen on paper copy T&C's/credit agreements.

I found the answer to the OP's question by first finding "Click here for a copy of the full credit card agreement" on the Cap One website. When the new window opened, I used the "edit/find(on this page)" command to search for "Total Charge for Credit".

The search criteria can then be re-defined pick up all the details you need.

qfis1

My thanks to Grumbler and YorkshireBoy, that is certainly clearer now.
Seeing those interest figures in print also reminds me to set up one of Martin's 'Tart Alert's !!!!