Confused by interest rates!!

consnmattsmom

I have a credit card with MBNA and am struggling with snowball to know what rate I am being charged.

On the statement it only gives monthly rates, balance transfers and cheques 0.2425%, cash transactions 1.8735% and retail 1.2408%.

Any ideas how I can calculate the proper rate ie 15.9% 19.9% etc.

Mindspace

If you take monthly rate and multiply with 12 you should get %APR.

so for ex. balance transfers and cheques 0.2425x12=2.9% apr

Mozette

That isn't quite right. I don't know how to calculate it, but 1.02% monthly rate is 12.99% APR, and 1.57% monthly is 21.3% APR, according to one of my cards. I'm sure there must be a way...?

oscar52

multiply by 13 will be more accurate but still not exact

tealady

I think they are charging you different rates depending on what you have eg cash advance, or buy things and whether you use the cheques the bank sends you. I would suggest that for snowball use you use the highest rate, at least you know what is the worst case scenario.

GettingThingsDone

There is an interest rate calculator on the snowballer site (look at the links on the left)

you can put in the monthly rate and it calculates the annual rate

gtd

Crown

consnmattsmom wrote: »

I have a credit card with MBNA and am struggling with snowball to know what rate I am being charged.

On the statement it only gives monthly rates, balance transfers and cheques 0.2425%, cash transactions 1.8735% and retail 1.2408%.

Any ideas how I can calculate the proper rate ie 15.9% 19.9% etc.

balance transfers and cheques 0.2425%, = 2.9%

cash transactions 1.8735% = 24.9%

retail 1.2408%. 15.9%

Approx conversion with a spreadsheet I dl from this site ages ago. Not sure who originally done it but if you want it (Excel SS) send me a PM with your email and i'll send it to you.