What is my real credit card rate?

starray

My credit card statement says that the interest on credit card purchases is 1.240% monthly and interest on cash is 1.490% on cash. Can anyone tell me how to convert that to an APR rate?

I called my bank to ask them what the APR was but they were very wishy-washy about it and couldn't (or maybe didn't want to) give a me a straight answer. They said that it changed so they couldn't really say! But they did say that it was on my credit card statement. And then I asked someone else from the bank and they gave me yet a different rate so I don't really know who is right.

If any experts know how to convert the monthly rate to an APR rate, would be very grateful!

omega27

1+(1.24/100)=1.0124. 1.0124^12 is 1.159379556 ie: 15.9% for purchases. Similarly for cash is 19.4%.

You would think that credit providers should be required by law to tell you what the APR is when you ask?

Mark7799

To emphasise the previous post, please remember that you won't have a single APR on your card but that purchases and cash advances are charged at different rates.

starray

Thanks! rj - I thought that they would be required to do so as well! But they just couldn't give me a straight answer!

starray

Oh - rjlawson, could you tell me what that upward arrow pointing sign means? (in your post) Thanks

MarkyMarkD

Raised to the power, or multiplied by itself that many times. Like squared is "raised to the power 2" and cubed is "raised to the power 3".

2 ^ 2 = 4 (2 * 2) whilst 2 ^ 3 = 8 (2 * 2 * 2).

An annual interest rate is (1+the monthly interest rate) multiplied by itself 12 times, less 1.

starray

Thanks! Most useful.