Card Interest Calculation
shonky_2
Posts: 17 Forumite
in Credit cards
I'm just trying to work out some numbers, but I can't for the life of me work out how the banks calculate their interest on credit cards. Is it:
(Balance * Monthly Interest Rate) less repayment
OR
((Balance less repayment)) * Monthly Interest Rate)
Thanks
Shonky
(Balance * Monthly Interest Rate) less repayment
OR
((Balance less repayment)) * Monthly Interest Rate)
Thanks
Shonky
0
Comments
-
Paying interest on credit cards :o :o
You need to read this http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1080684075,39998, ;)
(I modified the link so that it works)0 -
Unfortunately they all do it slightly differently and you need to look at the terms and conditions.
You can have several interest rates charges simultaneoulsy depending on the nature of the transactions, you can have nominal amounts referred to as "standard balance", some deduct charges from your payment and don't charge interest on them, I think some charge on an average daily balance. Deliberately obfuscated and confusing? I for one think so.
Can I ask why you need to know? If you work out an approximation and it is far from what you were charged then you could always ask for a more detailed calculation. Better still, pay off your balance or transfer it onto a 0% offer and don't pay any interest at all.0 -
That link didn't seem to work.
As for paying interest - it is actually for information only!0 -
That link didn't seem to work.0
This discussion has been closed.
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