Credit Card Center Advertiser Disclosure

New Visitor
Posts: 1
Registered: ‎01-18-2013
0 Kudos

Plz explain how APR works!

[ Edited ]

Guys hi


I want to take credit line from my bank(chase)


just spoke with my business banker and she said that i can count on 10%-15% APR.

I am looking to get 30K credit line.


How do the interest and payments calculated?


Let's say i am aproved for 30K with 12% APR.

On Feb 1st i spend ALL this money(30K) on inventory i want to buy.

What will be the inetest and payments? The intesest won't be 30,000*0,12 every month right? It will be 30,000*0,12 TOTAL for a year, right?

And if i pay this within 6 months it will be even less. Basically total amount i will end up paying will be 30.000K i took + around 2.2K in interest - does i calculate it right?

It's totally new for me, so please explain in detailsSmiley Wink


Thx a lot! bTycoon


p.s. i allready have 2 business credit cards(chase and amex), just want to get credit line(expect to pay it withing 6 months most) for inventory.

Valued Contributor
Posts: 1,115
Registered: ‎10-31-2011
0 Kudos

Re: Plz explain how APR works!

10-15% is the Annual Percentage Rate so to make it easy lets say the apr was 12% and you charged on average 10k per month...would you pay $1200 per month interest? No you would pay 12%/12 months so 1% per month. Which easy enough is only $120 for for 10k balance at the end of the month.  


Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.