Credit Card Interest Question

[questions]

can anyone tell me what the difference is between 'Purchase interest'
and 'Cash interest'. Both appear monthly on my capital one statements,
usually coming to around £25 on average, together. I haven't purchased
or withdrawn cash on this card for many months now as I am trying to
settle the bill for good, so does this seem erroneous to anyone?

Or are they just another name for the monthly interest accrued? if so,
why place it in two categories?

Cheers - Paul R. (UK)

[34saving]

Re: Credit Card Interest Question

Totally a guess on my part, but you might be paying interest on a cash advance (or "convenience check") from long ago. They probably credit all of your payments to lowest interest (your purchases) and leave the higher interest cash advance just sitting accumulating more and more interest.

[b4freedom]

Re: Credit Card Interest Question

can anyone tell me what the difference is between 'Purchase interest'
and 'Cash interest'. Both appear monthly on my capital one statements,
usually coming to around £25 on average, together. I haven't purchased
or withdrawn cash on this card for many months now as I am trying to
settle the bill for good, so does this seem erroneous to anyone?

Or are they just another name for the monthly interest accrued? if so,
why place it in two categories?

Cheers - Paul R. (UK)

Purchase interest is the interest charged on purchases. Cash interest is the interest charged on cash advances. Cash interest starts the moment you take a cash advance. Cash interest is usually higher then purchase interest. Usually you have a grace period for purchase interest. However, if you have outstanding balances, any payments you make will be applied to the lowest interest rate. As long as you carry a balance, you'll pay interest. The only way to avoid interest is to never carry a balance and to never take out a cash advance.