Do credit card companies apply APR when you don't pay your bill on time?

Answer 1

Yes. Your APR is Annual Percentage Rate of interest. This percentage calculates your interest charge on the balance of you card. Some cards find your balance as an average of the month, some as an ending balance, etc. However, your question is when its not paid on time. In fact, in the fine print of the charge agreement you signed, it probably states that your rate can go up to 24% or more if you are past due EVEN ONE DAY. Avoid late payments if at all possible - not only do you pay more, but your credit rating will suffer as well. This will effect what you pay on ANYTHING you buy on credit in the future.

Answer 2

If you do not pay your balance in full each month - the balance generates interest - this interest is calculated on the apr.

The balance multiplied by the apr % divided by 360 or 365 (days in a year) (either is acceptable by the Federal Reserve Board) and then multiplied by the number of day in the billing cycle = the interest charge for that month.

If the bill is not paid on time, the interest rate can be adjusted as per the contract. Also, late fees will be accessed.

Answer 3

no, credit card companies apply interest if you dont pay your balance in full each month. the apr is the annual percentage rate, and that is how your interest is calculated each month depending on what YOUR apr is.