I don't know how APR works.

[laz98]

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@dalebb wrote:

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@Booner72 wrote:

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@GregB wrote:

24.99% on a car is still 24.99% per year or 2.0825% per month, which is a horrendous interest rate.

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Really?  I thought that was a pretty good deal.

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25%? passes out and hits the foor

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any room on the floor for me? 

[dalebb]

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@laz98 wrote:

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@dalebb wrote:

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@Booner72 wrote:

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@GregB wrote:

24.99% on a car is still 24.99% per year or 2.0825% per month, which is a horrendous interest rate.

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Really?  I thought that was a pretty good deal.

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25%? passes out and hits the foor

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any room on the floor for me? 

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sure snuggle up

[steve23111]

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@dalebb wrote:

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@Booner72 wrote:

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@GregB wrote:

24.99% on a car is still 24.99% per year or 2.0825% per month, which is a horrendous interest rate.

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Really?  I thought that was a pretty good deal.

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25%? passes out and hits the foor

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I know, right?  I know it was back in 2005 but less than 3 years out of Chapter 7 and hardly on the road to rebuilding I financed a car through Capital One for 8.95% APR, and THAT was steep at the time!

[Anonymous]

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@Booner72 wrote:

OOOOOOH!!!!!!!!!!!!!!!!!!!!  I GET IT NOW!!!!!!!!!!!!

Wow, well that's good news, then.  JEEZ.  I've been freakin out about DH's Lowe's bill that has about 250 on it and I thought we were going to pay over 50 dollars a month in INTEREST for it.  What a relief.

i think I got this bc our truck was at 24.99% until we refi'd and I knew that was 25.00 per 100 per month.  So auto loans do it different, then?  They call it "simple interest?"

THANKS YOU GUYS

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APR is APR, it's your annual percentage rate. Others explained how to calculate it, but I've always found it easier to just divide your APR by 12, and that gives you the monthly interest percent you'll be paying (well, close enough).

24.99% APR on a car loan is awful, though. If you have short/bad credit, you have to take what you can get, but keep in mind that a lot of banks/credit unions offer 1.99-2.99% interest on cars. You'd have to have pretty good credit to qualify for that that low, but 5-8% would be reasonable. 25% is really subprime, you were getting majorly ripped off. I'm glad you refinanced it.

[Booner72]

I was kidding.  I know 24.9 is terrible. We refi'd at 6.9.  I know that's not super but a ton better than 25!

Bought a new subie and got a rate of 5.24%.  My credit has drastically improved since I found this forum.

So thanks everyone, and MERRY CHRISTMAS!!

[CreditCrusader]

Easiest way for me to compute and figure APR is as follows:

Ex:

APR 22.9%, $300 balance subject to interest

That is the ANNUAL percentage rate...to make that monthly, divide it by 12 (as in 12 months in a year):

22.9/12 = 1.908% monthly rate

Now, divide that monthly rate by 100 to arrive at the actual interest multiplier that is matched against your balance:

1.908/100 = 0.01908

0.01908 x 300 = $5.72 in interest for that billing cycle.

What can I tell you...I'm a numbers guy

[LS2982]

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@CreditCrusader wrote:

Easiest way for me to compute and figure APR is as follows:

Ex:

APR 22.9%, $300 balance subject to interest

That is the ANNUAL percentage rate...to make that monthly, divide it by 12 (as in 12 months in a year):

22.9/12 = 1.908% monthly rate

Now, divide that monthly rate by 100 to arrive at the actual interest multiplier that is matched against your balance:

1.908/100 = 0.01908

0.01908 x 300 = $5.72 in interest for that billing cycle.

What can I tell you...I'm a numbers guy

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I just PIF to avoid all the math.....I hate math!!!

[Anonymous]

Yes, but billing periods have different number of days. Plenty of previous posts from other numbers guys have detailed the more correct way to calculate... But that is a good estimation... Again.

[rootpooty]

U make it sound so simple. Your example is my situation right now so please explain if you can. This will be the first month I won't PIF. For example my NFCU CC will have a 350.00 balance this month. If I only make a payment of 100.00 how much of that 100.00 goes to the balance sorry forgot to mention APR is 17.99

[steve23111]

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@rootpooty wrote:
U make it sound so simple. Your example is my situation right now so please explain if you can. This will be the first month I won't PIF. For example my NFCU CC will have a 350.00 balance this month. If I only make a payment of 100.00 how much of that 100.00 goes to the balance sorry forgot to mention APR is 17.99

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If you had a $350.00 balance going into the current cycle, your finance charges for the period will be ((0.1799/365)*31)*350) or $5.35.  So, your next statement balance will be approximately $355.35.  Make a payment of $100.00, that reduces your balance going into the next cycle down to $255.35.  Finance charges on that will be $3.90, so the following statement would be $259.25. Etc, etc.