How Is Credit Card Interest Calculated? - NerdWallet



How Is Credit Card Interest Calculated? - NerdWallet

If your credit card has an annual percentage rate of, say, 18%, that doesn't mean you get charged 18% interest once a year. Depending on how you manage your account, your effective interest rate could be higher, or it could be lower. It could even be 0%. That's because interest is calculated on a daily basis, not annually, and is charged only if you carry debt from month to month.

Knowing how credit card issuers calculate interest can help you understand the true cost of your debt.


Read full article from How Is Credit Card Interest Calculated? - NerdWallet


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