Daily credit card interest indication

MrFrugalFever

Would anyone else feel that having a ‘daily interest calculation’ on your credit card account / app would really add value? An update based on previous 24 hours usage and balance that indicates total interest charged for the month (maybe cumulative daily?) if balance is not paid in full.

they can calculate an estimated interest for future month, but I feel like it would be great to see more of a breakdown, especially for those who are DFW’s or follow the PAD method.

thoughts?

pbartlett

it would be a simple calculation. unless i am wrong, for eg a card with a 29% apr the daily interest would be 

29* balance/36500

maxsteam

pbartlett said:

it would be a simple calculation. unless i am wrong, for eg a card with a 29% apr the daily interest would be 

29* balance/36500

No. The annual rate multiplies the debt by 1.29. The daily rate multiplies the debt by the 365th root of 1.29 or 1.0007. The daily rate is 0.07%.

Sandtree

MrFrugalFever said:

thoughts?

As already illustrated on this thread, people are confused enough about interest rates and APRs without adding extra detail like an interest rate breakdown based on a series of assumptions. I personally wouldnt want to pay an extra 1% APR to cover all the additional phone calls it would generate. 

[Deleted User]

I pay my spending cards in full every month and the others are BT at 0%, I don't see any reason to have this feature which will inevitably increase costs as Sandtree rightly says

MrFrugalFever

Sandtree said:

MrFrugalFever said:

thoughts?

As already illustrated on this thread, people are confused enough about interest rates and APRs without adding extra detail like an interest rate breakdown based on a series of assumptions. I personally wouldnt want to pay an extra 1% APR to cover all the additional phone calls it would generate. 

I think just a simple calculator online which is like a live visual of estimated interest at end of month is perfectly do-able with a little algorithm, it would be more beneficial to debt free wannabe's the most IMO

Blackbeard_of_Perranporth

I don't know what my APR is as I pay in full each month!

jimjames

Isn't the amount it will cost you each month the important bit? As above I don't pay interest and it would always be 0

Sandtree

jimjames said:

Isn't the amount it will cost you each month the important bit? As above I don't pay interest and it would always be 0

Not necessarily, APR has to include all standard fees too and on revolving credit like a credit card its based on 12 months and borrowing £1,200.

So if the OP's card had a £300 fee and they paid off in full each month despite paying no interest their "personal APR" would still be 25%