Quick question . . .?

Question

Do credit card company charge interest once a month? Please explains, Thank you!

How does it work? the whole interest stuffs . . .

Answer 1

Credit card companies charge you interest once a month. Its Like a loan the interest is computed and billed when the statement is sent. Generally you are paying two different interest rates one is typically higher on any cash with - drawl then on actual store purchases. If your debt off each month then you Will only be charged on that months balance however if your card carries a balance then you will pay interest month after month on the same balance. 17% of Citibank's profits last year were from interest and finance charges alone.
Kourtnie Donihoo
The EDA Group
1 866 605.0753

Answer 2

They certainly do charge once a month and it compounds over the year. In the UK and probably the USA they will also give you the effective Annual Percentage Rate which is easier to understand. At the moment some are about 15%.

However you can get much cheaper credit elsewhere. I only use a credit card for convenience, not for borrowing money.

Answer 3

Yes they do unless they provide you a "grace period" to pay the balance in full without incurring interest expense. This usually applies only to purchases charged, not cash advances. Cash advances typically get charged interest from the day they are advanced until the day they are paid,

If you carry a balance on the card from month to month expect to pay 1/12th of their stated interest rate on the balance you carried over.

Answer 4

Yes, they do - and it is compounded. Basically, for all intents and purposes, once you reach a certain point you won't be able to pay the amount back by paying the minimum amount due.

Answer 5

of course they chrge u interest once a month unless its sum spl plan