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I have a balance of nearly $1,748.96 and a 13.99% apr after the 10th of August. He said if I keep my balance until the 14th (statement close), my interest would be $2.68 and I asked if I kept it hypothetically (said I am going to pay my minimum balance) tif i kept the balance until sept 14th (possibly my next statement close) how much would the interest be? He said $23 and some change...
I did 1,748.96x.1399 and I get $244.68...
Please help me figure this out...
edit: He also said my premium rate is 3.25%+10.74% I don't understand this either.
The APR is the Annual Percentage Rate. So you take your 13.99% and divide that by 12 to get your monthly percentage rate of 1.17. You then multiply that by your balance of $1748.96 and you get $20.39. This is how I understand interest to be calculated. I may be wrong though...
Average daily balance x interest rate / 365.25 x number of days = total interest.
In your example
$1,748.96 * .1399 / 365.25 * 4 = $2.67958 rounded up to $2.68
Or until Sep 14th
$1,748.96 * .1399 / 365.25 * 35 = $23.44635 rounded up to $23.45
Off topic a little... but does anyone remember when prime rate was 20.5%?...
I think scsplayer has it figured out. For the second part he gave me $23.6? I believe, but it is likely because my balance changes on the 14th. Thank you everyone.
You mean prime rate was that high for everyone or just people with poorish credit?
No for everyone.. back in 1980 something.. I think prime rate peaked at 21.5% or somewhere around there..
The credit card market would certainly suffer if that rate ever skyrocketed that high again..