It often appears near the bottom of the bill, after the details of your charges, credits, and other account activity. Start by locating the current credit card APR on your monthly statement. Find the Current APR on Your Credit Card Statement This is officially known as the daily periodic rate but is commonly referred to as the daily annual percentage rate or daily APR. Step 1: Calculate Your Daily APRįirst, calculate the rate at which your credit card balances earn interest each day. How to Calculate Your Monthly Credit Card InterestĬalculating your monthly credit card interest is a three-step process that requires only simply arithmetic - although you’ll want a calculator handy. It also begs the question: How much do we really know about how credit card finance charges are calculated? Keep reading to learn how to calculate your credit card interest rate - and why it’s so important to pay off those balances as quickly as you can. After all, if we look hard enough, most of us can find a few extra dollars in our monthly budgets. That underscores the importance of paying more than the minimum each month. The second scenario results in a much faster payoff and much less in total interest owed. Both scenarios assume you don’t make any further charges. Right below the lines for “balance,” “minimum payment due,” and “payment due date,” you’ll find the Minimum Payment Warning, which reads something like this: “If you make only the minimum payment, you will pay more in interest, and it will take you longer to pay off your balance.”īelow the Minimum Payment Warning, you’ll see a 3 x 2 table that reveals the time needed to pay off your balance in full under two payment scenarios: one in which you make only the required minimum payment each month, and one in which you make a slightly higher monthly payment. Take a look at your most recent credit card statement.
0 kommentar(er)
