how to calculate credit card interest

Your interest rate is the amount your credit card charges you to borrow money.
If you pay your credit card balance in full and on time, you generally don’t need to worry much about your interest rate, which is expressed as an annual percentage rate (APR).
However, if you’re carrying an unpaid balance on your credit card, you’re paying a little interest every day, which you’ll see on your monthly bill.
While you’ll want to check with your bank before running your own calculations, many credit card issuers use the average daily balance method of calculating interest.
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When it comes to credit cards, understanding your interest rate and how it works can be the difference between staying out of debt with an excellent credit score and falling behind in your payments and dipping to sub-par credit score ratings.

Your interest rate is the amount your credit card charges you to borrow money. If you pay your credit card balance in full and on time, you generally don’t need to worry much about your interest rate, which is expressed as an annual percentage rate (APR).

But if you’re carrying a balance on your credit card, you’ll notice …read more


Source:: Businessinsider – Finance

      

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