APR??!! I am confused please help!!?

Question

Ok so I applied to a best buy card and I got approved but for program b and only $300. It says the APR for purchases is 24.9% which may vary. Other APRs 28.9% which may vary. There are a couple more things that I won't list at the moment but I will if it can help answer my question. My question is if I buy something with this card and I pay it right off in one month will I be charged the full 24.9% APR. I am assuming that the APR rate is annually so only if it took me a year I would be charged 24.9% interest. If I use this card and buy something for $300 I don't want to be charged 25% interest if I pay it off in one month. That's $75 right down the drain. Thanks for your time.

daman, i meant if i payed the $300 dollars in full the first month. If I finished the $300 dollar payment in 1 month and did not owe anything on the card would I still pay full interest for a year or would it be converted down to 1 month because I payed it in 1 month.

Answer 1

Cut the card, do without - pay off your bills entirely every month. Works for me - now I'm a homeowner.

Answer 2

24.9% is the ANNUAL percentage rate. To see how much interest you would be paying on a monthly statement would be as follows:

$300 balance X 0.249 X 1/12 = $6.22

So you would pay about $6.22 in finance charges for the first month. Please note that the "1/12" converts the APR to a monthly factor which is the basis for your MONTHLY billing statement.

If you paid $6.22 in finance charges for the first month and for each of the remaining 11 months in a year, the total interest would be about $72.

So, over a full year you would be paying about $75 in INTEREST for an original $300 balance as you stated.

Hope this helps.

Answer 3

credit cards are nothing but trouble

Answer 4

get rid of that card!!! holy crap they have some nerve!