Help, making sense of CC interest rates

hbslc

My MBNA CC statement says my monthly interest rate is 1.2408%, 1.7366% for cash advances. Not sure if I've ever taken cash out, but quite possibly.

If I divide the interest charged by the balance I get 1.522%. Thus, indicating I must have taken cash out in the past.

Can anyone answer the following questions:

1) What interest rate is charged for Late payment fees etc?

2) How do you work out the APR from the Monthly interest rate? Multiplying 1.2408 by 12 is 14.8896%, but surely it needs to be compounded?

Why don't they make these statements easier to read :mad:

Thanks

Bokkens

Q1 Look on the back of the statement for this information.
Q2 again this will be on the rear of your statement if not then look at the terms and conditions that they sent you.If you don't have these read them on the CC web site.
For a basic guide the interest rate x by 12 to get a approximate amount for the year.
ie.£1000 @ 14.88% = £148.80 interest charged on your £1000 per year.£148.80 Divided by 12 = £12.40 a month.
Hope that helps I am sure someone else will be along to make it more accurate for you soon.

tom188

I would say 15.9% apr purchases, 22.9% apr cash withdrawals.

YorkshireBoy

hbslc wrote: »

1) What interest rate is charged for Late payment fees etc?

The late payment fee itself is £12. The interest charged on the late payment fee is the standard rate of 1.2408% per month (15.9% APR).

2) How do you work out the APR from the Monthly interest rate? Multiplying 1.2408 by 12 is 14.8896%, but surely it needs to be compounded?

Enter the following in the UK google search bar...

(1+(1.2408/100))^12-1)*100

and press enter.

The result will be displayed as 15.9489498

Which you then round down to 15.9%

Substituting 1.2408 with 1.7366 returns 22.9%