credit card interest apr daily percentage rate?

Question

Hi,

I'm soon going to apply for a credit card, but my question is : I'll probably get an 18-22% apr, say i charge 300 to my credit card, how much would be added from a daily percentage rate?

My second question is will i still be building credit if i charge one day, and the next day I pay it off?

3. If i can still build credit like that, is it possible to charge one day and pay it off the next day?

sorry if these questions are dumb, or if i left out information, let me know if you need anything else.

pz

Answer 1

Hi there, this is the site that covers your questions from all aspects:
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and here there's some info too
http://finance.ebookorama.com
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good luck!

Answer 2

These questions are not dumb. They show that you are thinking before you act.

Each card is different. The method of determining the interest depends on the card. If you pay the balance within the stated period (usually 25-30 days), no interest is charged. However, if you are late or miss a payment, you pay a penalty and the company can raise your rate to a much higher one.

AT&T Universal Card is one of the worst! They change the interest rate all the time for no reason at all.

You can do some research on the web to find the best deal. Be careul of cards that have teaser rates like 0% interest for 6 months. Then they change the rate to a much higher one.

Why can't you find a lower rate than 18%? I suggest you ask the bank where you have your checking and savings accounts about their credit card rates. Also, if you belong to any associations through work, they sometimes have lower rates for members.

Yes, you will be building credit.

Whether you can pay off the balance before a bill is sent depends on the restrictions of the card company. If you do it on a regular basis, I do not know what the policy is. Again, the rules depend on which card you use.

Perhaps a better way to build some credit is to take out a small loan. Make sure you make the payments on time. Don't make any late payments.

Answer 3

It depends on the credit card what per cent you will pay as your APR. If it is a major credit card, they are usually more like 8 - 15%. Department stores, stores, and smaller credit cards are much higher in interest rates (usually the range you stated). If you charge $300, then depending upon how fast you pay it off will be how much interest is paid. And your interest will change each month because you only pay the interest that is remaining on the card - not the interest on the total purchase. Of course the sooner you pay it off, the less you pay in interest. You will also have to account for the monthly finance charge that will be assessed in addition to the interest. That too changes depending upon how much is left on/you pay.
2. Credit is based on 2 things - how much credit you have available to you (your balance) and how much you can get for credit. The more places that will lend you money/give you credit, the better your credit score. At the same time, the more you have open as credit, the better score you have. Credit ratings look at your max limit on a card, and how your paying record is (are you late? have you missed a payment? do you make just minimum payment each month, or do you pay more? do you charge and then clear it off at the end of the month, or do you let it carry over to the next month?). So in some ways paying it off will benefit you, but only where the interest is concerned, as well as the finance charge. They will look at timeliness of payment and how much credit you have with the card company.
3. If you make a charge, you have to wait for it to show up in their system (usually a day or two). Once it is there, if they take on line payment, you can pay it off right away. But if you can afford to pay it off, why are you using a credit card? Just use cash. Save the credit card for larger purchases. You will still look good credit wise if you have the credit extended to you.

Hope some of this helps. Good luck!!

Answer 4

it would be 5.50 for the first month. to find a monthly rate take you interest rate as a percentage (22%=.22) and divide by the months in a year and multiply that by the balance on the card. but yes you can buy then pay it off immediatly with no interest charged, pending that is in the original credit agreement.

Answer 5

For Finance and credit solutions I always recommend this site where you can find all the solutions. http://personalfinancesolution.info/index.html?src=5YAPZPovy3gpS1

RE :Credit card interest apr daily percentage rate?
Hi,

I'm soon going to apply for a credit card, but my question is : I'll probably get an 18-22% apr, say i charge 300 to my credit card, how much would be added from a daily percentage rate?

My second question is will i still be building credit if i charge one day, and the next day I pay it off?

3. If i can still build credit like that, is it possible to charge one day and pay it off the next day?

sorry if these questions are dumb, or if i left out information, let me know if you need anything else.

pz
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