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how much interest on 34%?

scrubmuncher · 2012-05-19 23:12:48

This is a basic question, but one I can't get my head around, so please help if you can. I have a Vanquis credit card, with an interes5 rate of 34%, but I can't seem to digest how interest is worked out. So if I give an exmple can you answer it so I can get an idea for my understanding. Say I have used 300pounds on my…

Comments

zagfles Posts: 21,551 Forumite

20 May 2012 at 10:06AM

bengal-stripe wrote: »

At 34% interest, you pay for every £100 outstanding, almost 10 pence interest per day. Interest is charged for every day of the outstanding balance (if you don't settle in full).

It's a bit over 8p per day, but it compounds monthly.

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