How Much Interest Will I Pay?
We explain how to calculate interest rates on your current credit card to make sure you aren’t paying over the odds. If you’re new to credit cards you can read up on how credit cards work to get to grips with the basics.
What is the APR?
How do you figure out APR on credit cards?
How is the minimum payment calculated?
Credit card APR tells you what interest rate you pay, but it doesn’t include the effects of compounding – so you almost always pay more than the quoted APR. If you only make small (or minimum) payments on your credit card, you’ll start paying interest not only on the money you borrowed, but you’ll also pay interest on the interest that was previously charged to you. The APR on mortgage loans, however, is different from the simple interest rate because of additional charges or fees to you for securing your loan.
To Avoid Paying Credit Card Interest – Follow these 5 simple steps
1. Pay your balance on time and in full every month, and you’ll never have to pay or calculate credit card interest again!
2. Set a reminder to pay your bill early
3. Only charge what you can afford to pay off each month.
4. Take advantage of a 0% APR balance transfer offer
5. Use your card only in emergencies