credit card - interest on cash withdrawal

Hazzo

does anyone have any idea how this actually works?
I absentmindedly withdrew £30 from the wrong card in October last year and have been charged an annoying monthly interest of between 60 and 70p ever since. The card concerned is Capital One Classic and they say that in order to stop further interest I have to ask for and pay a settlement figure which will then mean that I will not be able to use my card. I always pay off my statement balance so no other interest or charges apply ... for example, my statement balance at 9 August was £818. In the subsequent statement period I paid in £1152 and made purchases of £584, leaving a balance at 9 September including 61p cash interest of £250. Unless I can get this straight in my head, it looks to me as if I will owe them the £30 plus interest for the rest of my credit-card-life! Help!!!!

YorkshireBoy

Cash advances are (nearly) always the last item to be paid off.

You have three options available to stop the interest:

1. Ring them up now, get a settlement figure, add £1 on, and pay it, or

2. When you get your next statement, pay it off in full and overpay by £1, or

3. Pay two consecutive statements in full.


Why not have a different PIN for your credit card to that which you use for your debit card? Alternatively, if it already is different, make it really distinctive like 999x - that might remind you of sirens and alert you to stop!

Hazzo

Great advice and thank you very much for taking the time to help with this.

jayjayuk

im in the same boat with capitol one....

i have been paying it for months/years..... as i only paid back the minimum payments....

however in a sitation to pay off my card in full this month

and cant wait to get my balance down to 0.

im now using an aqua card, it looks much nicer! and much lower intrest rates! and paying it off in full hoping to get a good credit raiting.

only 2 cards to go :P