Transcript

Understanding Credit Card Interest

UNDERSTANDING CREDIT CARD INTEREST It's a game of strategy, not chance! Nothing in life is free - including your credit card balance. Interest is the fee you're charged for carrying a balance on your card. It can break the bank - but it doesn't have to. Now that you The key to avoiding paying interest is to understand how the game is played! Let's start witha $1,000 balance. understand credit card interest, it's time to make a move and avoid CHANCE paying interest! Avoid paying Interest. Reduce your average dally balance, pay early, and pay multiple times a month. You charged $1,000 on the 1st day of the billing cyce. Your average daily balance is $1,000. COMMUNITY CHEST .000411% APR, or interest X $1,000 X 30 COMMUNITY CHEST 01 rate, is the % of your total balance charged to your You charged $1.000 on the last day of the billing cycle. Your average daily balance is $33.33. = $12.30 account. To better 30 understand how APR is calculated, $12.30 is the interest you'll pay for we must first the month. determine the daily percentage rate. PERIODIC INTEREST RATE COMMUNITY CHEST AVERAGE DAILY BALANCE IN FREE 24 Total unpaid balance at the end of every day 15% (APR) + 365 %3D number of days in billing cycle PARKING 000411% %3D PERIODIC INTEREST RATE AVERAGE DAILY BALANCE JUST Get Out of Jail Free - Avoid Paying Interest You will be charged interest on every charge, every day. But nearly all companies will waive interest charges when you pay the entire balance in full and on time by the due date. This period between the end of the billing cycle and the due date is known as the Grace Period. Billing cycles don't always start and close in conjunction with the 1st and 30th of the month. Contact your card issuer to defermine your billing cycle's start and close dates. REGAINED INTEREST INTEREST FREE PAYMENTS CHARGED INTEREST FREE PAYMENTS STATEMENT CLOSE DATE JUNE 1 STATEMENT CLOSE DATE STATEMENT JUNE 1 STATEMENT STATEMENT STATEMENT CLOSE DATE CLOSE DATE CLOSE DATE CLOSE DATE DUE DATE DUE DATE DUE DATE GRACE PERIOD GRACE PERIOD GRACE PERIOD GRACE PERIOD JULY AUGUST Interest JUNE JULY JUNE End of SEPTEMBER No Interest Interest chargedl for June and July Pay No Interest Pay No Interest JULY Pay No Interest $2.000 Purchase $2.000 Full Payment $4,000 $2,000 Partial Payment Full Payment Balance Purchase Purchase Paid in Full CompareCards.com Compare. Pick. Save. 09 CHANCE ANNUAL PERCENTAGE RATE VISITING GO TO JAIL JAIL yold paying inferest! CHANCE CALCULATE MY INTERES

Understanding Credit Card Interest

shared by CompareCards-com on Sep 20
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In 2013, credit card interest was reportedly one of the top complaints according to the list of consumer-submitted complaints to the CFPB. With the average interest rate for credit cards currently at ...

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