Understanding Interest and APR
发布时间:2017年09月12日
发布人:nanyuzi  

Understanding Interest and APR

 

When you use your credit card, charges like interest are normally added to the amount you’ve borrowed.

 

“Just on that.”

 

And although most providers will wait up to 56 days before charging you interest on purchases, the interest rate is different depending on how you use your card.

 

“Exactly!”

 

And that interest is often higher and charged immediately. Together, the interest, fees and what you spent add up to the total amount you have to pay back. And the way it’s calculated is a real science. But because we aren’t all rocket scientists like this chap. Credit card provides will wrap up all those difficult numbers and sums into a handy thing called the APR. The APR makes it easy to compare different cards before deciding which one is best for you. It’s based on the purchase interest rate and includes things like annual fees, although cash withdrawal charges and default fees are not included. If you think you might have trouble making any repayments, click the “default fees” button or have a look at more information on interest and APR on our website.