Capital One interest calculations

PJHilder

Hi,
Trying to figure out how capital one determine how much interest to charge. I normally pay off the full balance but last month due to mix up with payroll I wasn’t able to pay it all off in time. The amount of interest they’ve added seems rather high to me and I was wondering if they’ve charged me interest on the full balance. In this case balance was about £1600 and I paid off about £1400. They’ve charged about £37 on the remaining £200.
Is this normal capital one behaviour?Thanks

Mr_ML

Yes, once the statement is issued, if you don't pay it off in full, they charge you the interest on the full balance. Every provider do the same but tymit I think 🤔 

[Deleted User]

The interest is charged daily so you can check the calculation yourself.

dr_adidas01

As others have pointed out if you don't pay your statement in full then yes they charge you interest on the full balance, and its standard practice by nearly every credit card provider.

PJHilder

Mr_ML said:

Yes, once the statement is issued, if you don't pay it off in full, they charge you the interest on the full balance. Every provider do the same but tymit I think 🤔 

Thanks for that. https://www.nimblefins.co.uk/credit-card-interest-free-periods-explained certainly explains it better than Capital One own FAQs.

MinuteNoodles

PJHilder said:

I'll just have to remember next time to only pay the minimum if I'm not able to pay the full amount and keep it in the TSB account. The 1.5% will offset the interest a tiny bit.

Not worth it. Much better paying off as much as you can. Removes the temptation to spend what's sat in the bank leaving you carrying an even bigger balance you can't repay the following month.

[Deleted User]

PJHilder said:

Mr_ML said:

Yes, once the statement is issued, if you don't pay it off in full, they charge you the interest on the full balance. Every provider do the same but tymit I think 🤔 

Thanks for that. https://www.nimblefins.co.uk/credit-card-interest-free-periods-explained certainly explains it better than Capital One own FAQs. I'll just have to remember next time to only pay the minimum if I'm not able to pay the full amount and keep it in the TSB account. The 1.5% will offset the interest a tiny bit.

Terrible idea.  You're gaining 1.5% interest but losing much with the rate you're paying on the card.

Always pay as much as you can to reduce the interest.

molerat

TSB giving 1.5% per year

Credit card likely charging 1.5% per month