I called the bank today and the lady said that when you have a credit card the interest is charged daily. I have an 11% interest rate and owe about $600. Am I going to be charged 11% every day because I might have to start stipping or sumthing to pay that off. (Kidding).
Does anybody have an idea of about how much I would have at the end of the month assuming I didnt pay anything off and the interest rate didnt change.
2007-11-12 11:31:28 · 5 answers · asked by shelly 2 in Business & Finance ➔ Credit
No this is the annual percentage rate the credit will cost you. In otherwords if you do not pay the balance off in 12 months it will cost you sixty six dollars. You are charged daily but the rate is much lower than the annual rate. It is easy to figure out how much the credit cost you per month by simply taking the intrest rate and dividing it into 12. In your example you would take 11.00 / 12 which equals 0.92. So every month for every 100 hundered dollars you owe you will pay ninety two cents in interest. Since you owe 600 you will pay 5.50 per month in interest charges. To figure how much it cost you yearly take 5.50 X 12 = 66.00 which is the amount the loan will cost you per year. You can always pay off the loan early and even if you pay just an extra 10 dollars a month it will help reduce you interest due quicker.
2007-11-12 11:50:38 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Look on the bottom of your statement. The annual percentage rate (11%) factors into a rate of .0301 per day. But note that any additional purchases do not get a grace period. You start paying interest from day one.
Your interest on the 600 balance is going to be around 5.50 which may be lower than the minimum which can be found on the back of your statement.
2007-11-12 11:43:25 · answer #2 · answered by K M 3 · 0⤊ 0⤋
She is right when she said interest is charged daily. not 11% daily. That 11% is an ANNUAL interest rate. If you want to know what the daily interest rate is take 11% and divide by 360 or 365.
2007-11-12 14:40:34 · answer #3 · answered by !!! 7 · 0⤊ 0⤋
you shouid always check the interest before signing up for a credit card. if your bank has access directly to your bank account i suggest you either cancel the credit card now,pay the current charges plus interest,ask the bank for a low or no interest option credit card. even if you dont pay off the full amount any little payment every or every other week will help your credit.,good luck.
2007-11-12 11:46:24 · answer #4 · answered by thehottestbradpitt 3 · 1⤊ 0⤋
I didnt really understand your question.
But, I believe you take 600 x 11% = 66
And that would be for the first month. The next month of course would be different cause of the 1st payment......
good luck
2007-11-12 11:40:22 · answer #5 · answered by your_sunshine78 2 · 0⤊ 0⤋