Interest Rate Calculator

jacsll55 · 17 May 2019 at 1:16PM

Hi all,

Just a quick question regarding the monthly interest rate on credit cards.

Would I be right in thinking that if a monthly interest rate for a credit card was 1.870% monthly on purchases, does that mean they charge 1.870 of your balance?

This is what I see on the dashboard:

Monthly Interest Rates
Cash transfer and ATM withdrawal: 1.87%
Card spend: 1.87%
0% interest on Card spend if you repay your statement in full every month!
Card spend Monthly Interest Rate: 1.87%

(Interest will only incur if you don’t repay in full every month)
Cash transfer and ATM withdrawal Monthly Interest Rate:
1.87% (Interest incurred whilst funds are outstanding)

What is my APR? Does it mean my interest rate is same for card purchases and Cash Withdrawals?

Thanks in advance!

[Deleted User] · 17 May 2019 at 1:25PM

Not quite. Interest is charged on your daily balance.

Your terms will tell you your rates for cash and purchases. In your case, they're the same.

Ben8282 · 17 May 2019 at 3:04PM

In very simple terms yes, you will pay £1.87 per-month per £100 balance.
Is this a UK issued card? Some of the terminology used on your dashboard seems a bit strange.

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