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Question about interest
CreditCardChris
Posts: 344 Forumite
in Credit cards
If I have a balance of say £3000 on my credit card and I decide to pay half of it one month and the other half the next month, the cards yearly interest rate is 22%. Does this mean the interest I'll have to pay would be calculated as 22% of £3000 = £660 / 12 months = £55 a month, so £110 interest in total for the 2 months?
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Comments
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No. Your interest is calculated daily, so it depends on your daily balance.
How long will you have the 3k balance, and how long will you have the 1.5k balance?0 -
The balance will be £3000, I'll pay £1,500 at the end of the first month then the other £1,500 at the end of the second month.0
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You'll pay around £50 interest for the first thirty days, then around £25 for the second thirty days.0
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That’s such a lot of interest for just two months of borrowing a small amount.0
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At 22% interest is roughly 60p per £1000 on the daily balance outstanding.0
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