New To Credit Cards

cogster_2

Hi, I have a CapitalOne card and have just made my 3rd payment. Now - how come the 'Payment received' and 'Purchase interest' are different amounts?

They accepted my payment and now 2 days later a purchase interest amount shows up. The purchase interest is about half the amount of the payment!!!

Thanks in advance guys!

Cogster

Hippychick

Because if you do not pay your bill in full you will get charged interest on the balance, check what interest rate you are paying.

You are better off paying off the balance in full every month.

Don't make the mistake I did and use credit cards willy nilly you can soon rack up the debt and will regret it later.

cogster_2

But I have been charged about half my 'minimum payment fee'???

CannyJock

cogster wrote: »

But I have been charged about half my 'minimum payment fee'???

Yup, welcome to credit cards. Your minimum fee will be about 3% of the balance, the interest will be about 1.5% of the balance.

What's the interest rate they charge each month? It should be shown somewhere on your statement.

Did you think this was a 0% purchase card?

If you've not already, read Martin's article on the minimum repayment trap and use the calculator to see how long you'ld need to repay your debt at the minimum only: http://www.moneysavingexpert.com/cards/minimum-repayments-credit-card#calc

cogster_2

CannyJock wrote: »

Yup, welcome to credit cards. Your minimum fee will be about 3% of the balance, the interest will be about 1.5% of the balance.

What's the interest rate they charge each month? It should be shown somewhere on your statement.

Did you think this was a 0% purchase card?

If you've not already, read Martin's article on the minimum repayment trap and use the calculator to see how long you'ld need to repay your debt at the minimum only: http://www.moneysavingexpert.com/cards/minimum-repayments-credit-card#calc

39.4% var
credit limit £200
last payment £9.58

skyrider007

cogster wrote: »

39.4% var
credit limit £200
last payment £9.58

That interest rate is outrageous! Even my rip off Cap1 classic is 34.9%. Anyway I think you should not borrow from this card. Pay it off in full and take the advantage of 56-60 day interest-free period.

cogster_2

sorry I meant 34.9% tee hee.

I cant pay it off I am unemployed at the moment.