So after you pay a bill on your credit card, on the remaining balance they charge ARP? So if balance is $100, and the apr percentage is 20% ( just an example ) would they charge 20 dollars and you're left with $120?
1st time card holder.. stupid question, i know..
2007-10-22 13:36:09 · 10 answers · asked by Anonymous in Business & Finance ➔ Credit
no they will charge you 5 dollars or less
because you have to divide the APR rate by 365 days. then times it by the amount of credit being charged
2007-10-22 13:48:54 · answer #1 · answered by ★→Damian←★ 4 · 0⤊ 1⤋
From what I know the APR is an estimate based on the real rate they charge, which is applied daily (some really small number, which adds up over the long run)
It comes out to about 20% divided by 12 (months)
2007-10-24 04:19:54 · answer #2 · answered by JF 3 · 0⤊ 0⤋
No if you pay it off in full at the end of your cycle, you don't get charged a APR. While 19% isn't the best, it's the going rate these days for people with less the perfect credit.
2016-05-24 21:31:07 · answer #3 · answered by ute 3 · 0⤊ 0⤋
Not exactly. If you don't pay your statement balance in full, you will be charged interest. Interest is normally calculated based on the average daily balance times monthly interest, which is 1/12 of the APR.
If your APR was 12%, the monthly interest would be 1%.
The average daily balance would take the balance for every day, add them up, and divide by the number of days. So you pay interest for the whole statement amount.
Best thing to do is NOT carry a balance. If you pay in full, there's no interest. Saves you money and keeps you out of debt.
2007-10-22 13:47:45 · answer #4 · answered by bdancer222 7 · 0⤊ 1⤋
apr is your annual percentage rate.
the way the finance charges are calculated are based upon the average daily balance for that month. there is a formula that is used, and you can ask your credit card co for that info. but, if you have an apr of 20% and a remaining balance of 100.00 u wont be looking at 20.00 for interest, it would only be a couple dollars most likely.
2007-10-22 13:41:02 · answer #5 · answered by evanlah 6 · 1⤊ 1⤋
Well.. you're mostly correct except the APR is an ANNUAL rate so each month your balance would only increase by 1/12th of the percentage rate.
2007-10-22 13:39:17 · answer #6 · answered by Anonymous · 0⤊ 1⤋
No, A)nnual P)ercentage R)ate means you're charged 20%/12 (Twelve months in the year) so that your rate is 20% for the year. So yuor example would be:
100(1+(.2/12))=101.67
2007-10-22 13:40:11 · answer #7 · answered by anonimitie 7 · 1⤊ 1⤋
APR means annual percentage rate. This is not a monthly rate. They will charge you a monthly finance charge everytime you have a balance.
2007-10-22 13:40:54 · answer #8 · answered by Ofi 2 · 0⤊ 1⤋
% is % so read the detail. It's easy to do the math. But it's way to easy to do the spending. Have overdraw protection is the best.
2007-10-22 13:40:29 · answer #9 · answered by rookie 3 · 0⤊ 1⤋
you are correct
2007-10-22 13:38:25 · answer #10 · answered by John S 3 · 0⤊ 3⤋