Help understanding Interest Rates

GN_TDCI

Hi

Could someone sense-check my workings on Credit Card Interest Rates?

I have a number of cards, and whilst I have no Balance Transfer Offers, I want to ensure I am benefitting from using the correct card.

Each card seems to report their interest rates differently, so I just need to check with others which is the lowest rate, and then utilise that to repay the debts off better.

Card One: Aqua. Reports the interest rate as "Annual Simple Interest Rate". This is 40.534% (yes, it is high, this is the card I want to move funds away from)
Card Two: Vanquis: Reports the interest rate as "Monthly Rate". This is 2.16%

Am I correct that the interest rate for Vanquis is 25.92% and the rate for Aqua is 40.534%

If so, then moving the balance of the Aqua Card onto the Vanquis would reduce my interest significantly. Is this correct?

MallyGirl

Vanquis will be 29.23% - compounding. still better than Aqua

GN_TDCI

Thanks MG

That's where I was confusing myself. I assume that the AQUA Annual is a compounded rate already, and then as the Vanquis was simple it needed to be compounded first?

Thanks for the help.

Looks like about £152.26 in savings AND clearing the balance off 4 months earlier too.