Capital one purchase interest

spikescot2005

First bill was £7.20 which was paid on time.

Second bill is as follows: payment due 17/07/11

31.47 = shopping
21.80 = train tickets
46.00 = train tickets
38.00 = train tickets
30.00 = shopping

Total = 167.27

Purchase interest = 2.82

Total = 170.09

Requested ammount on statement = 170.59 ( this is where I don't know where the 50p has come from)

cse

Something definitely doesn't seem right there. £2.82 interest on a £7.20 balance that you paid in full? Even at Cap One's interest rates that can't be right...

Did you transfer a balance when you opened the account or anything like that?

spikescot2005

I have spoke to capital one.

The first bill was 7.70 not the 7.20 (my mistake i thought my bill was 7.20) I paid therefore the 2.82 is interest on the 50p that was outstanding and backdated to the day of purchase. To me that's alot of interest on 50p or am I missing something.

cse

That explains it... the £2.82 is interest on the 50p carried over from the last statement, plus all of the purchases on this month's statement from the date of purchase up until the statement date.

You need to pay this month's balance in full - £170.59 - and next month's, then you should be back to paying no interest as long as you keep on clearing the balance

lisyloo

That explains it... the £2.82 is interest on the 50p carried over from the last statement, plus all of the purchases on this month's statement from the date of purchase up until the statement

Isn't that still a lot though for balance of £7.70 for one month???

cse

It's not interest on £7.70 for the month, it's on an average daily balance of somewhere between 50p and £170.59

If it's a 34.9% card, £2.82 interest means an average daily balance of £111.52... seems perfectly realistic

spikescot2005

Thanks everyone for your help. Note to self check statement before making payment.