Interest on paid off Credit Card

MrsPorridge

I had a Capital One credit card for well over a year. The first year I had interest free on my balance. I never used the card for purchases. I have just transferred the whole balance to a 0% credit card - after paying interest on the Capital One card for 2 or 3 months. I have just received a statement with £27.95 interest on. What is this for? Is it accumulated interest? Grateful for any help.

Many thanks.,:mad:

YorkshireBoy

It's called 'residual interest' and will stop once you've cleared two statements in full by their respective due dates.

MrsPorridge

Thanks YorkshireBoy.

ICan'tStandIt

It's also called "trailing interest".

If you receive a bill and make a part payment and receive interest on the rest of the balance, they will charge you interest until they receive payment in full.

Therefore if you pay in full on receipt of the next statement, the interest stops when the money credits and the interest due is worked out until that date and shows when the next statement prints.

Hope that makes sense.