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How do you guys calculate how much do you have to pay for interest, can you guys give me an example that includes my credit card APR and how much I am in debt? For me,my APR is 19.99% for my Student Credit Card and I have to pay $605.51 USD! BTW,is the billing period the same thing as the grace period?
How do you guys calculate how much do you have to pay for interest, can you guys give me an example that includes my credit card APR and how much I am in debt? For me,my APR is 19.99% for my Student Credit Card and I have to pay $605.51 USD! BTW,is the billing period the same thing as the grace period?
The amount you pay in interest will vary - different credit card companies calculate it differently. Some use an average daily balance, some use a rolling average of two months, some use the month-end actual balance, etc... The simplest method is your balance of ($605.51 * .1999 / 12) for monthly interest of $10.09. To understand the method used by your company check your terms & conditions.
A billing period is different from a due date is different from a grace period.
When your billing period ends the statement is generated with a set due date. When you get your statement (after the billing period but before the due date) your payment must be received on the due date. If it is not then you hope you have a grace period. If the payment is received after the due date but during the grace period you will generally not be charged a late fee. If you are assessed interest during the grace period varies by company. In fact, if you even have a grace period varies by company. Check your terms & conditions to understand your billing period, due date, grace period, and financial impact of paying during the grace period. By company I do NOT mean MasterCard, Visa, Discover, etc - I mean the financial institution that actually issued that card.
I have questions about cash advance! 1.If I get a cash advance of $50,so my credit card balance is $50,is that correct? It said that the cash advance APR is 20.99%,but can anyone explain this:Your annual percentage rate may vary monthly. The rate is determined by adding a margin to the Prime Rate3. The margin used is as follows:
Purchases and Balance Transfers:
5.99% to 14.99%
Cash Advances:
15.99%
Delinquency Rate:
23.99%
In addition,my grace period is 20-25 days so does the grace period starts on the due payment date or the day after? Also,if I pay the balance during the grace period (which I guess is after the due payment date),will that affects my credit score negatively and show up on my credit report as a negative inquiry?
I have questions about cash advance! 1.If I get a cash advance of $50,so my credit card balance is $50,is that correct? It said that the cash advance APR is 20.99%,but can anyone explain this:Your annual percentage rate may vary monthly. The rate is determined by adding a margin to the Prime Rate3. The margin used is as follows:
Purchases and Balance Transfers:
5.99% to 14.99%
Cash Advances:
15.99%
Delinquency Rate:
23.99%
In addition,my grace period is 20-25 days so does the grace period starts on the due payment date or the day after? Also,if I pay the balance during the grace period (which I guess is after the due payment date),will that affects my credit score negatively and show up on my credit report as a negative inquiry?
Your credit card balance is the sum of your merchandise purchases plus your balance transfers plus your cash advances less any credits and payments. So in your example if your only activity that month was the $50 cash advance then your balance is $50.
The credit card company puts all of your activity in "buckets" (cash, merchandise, current, delinquent, etc)... that way each of the specific interest rates can be applied to the appropriate bucket...
If you pay during the grace period you will not be reported as delinquent... but don't get in the habit of always using the grace period, its more of a cushion for emergency or forgetfullness... work with your due date and that way if you miss it a few days or so then your grace period saves you... if you always use the end of the grace period and then miss a few days you then are delinquent, paying higher interest, paying late fees and getting reported to the credit bureau.
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