topic Re: Credit Card Interest in Credit Cards

Credit Card Interest

creditconcept — Sun, 18 Jan 2015 04:08:31 GMT

Hello All,

I have a simple question today; Are interest charges subtracted from your available credit and added to your balance?

For example, if I have a $1000 limit with $500 balance, and $25 in interest charges, my new balance is $525, but what im wondering is do I still have $500 available credit or is it now $475 because of the interest charge?

Thanks!

Re: Credit Card Interest

Anonymous — Sun, 18 Jan 2015 04:11:56 GMT

@creditconcept wrote:
Hello All,
I have a simple question today; Are interest charges subtracted from your available credit and added to your balance?
For example, if I have a $1000 limit with $500 balance, and $25 in interest charges, my new balance is $525, but what im wondering is do I still have $500 available credit or is it now $475 because of the interest charge?
Thanks!

Interest is counted against credit limit.

Edit: What the heck CC do you have that charges 60% APR?

Re: Credit Card Interest

Luscher — Sun, 18 Jan 2015 04:13:20 GMT

Available Credit will go down

Re: Credit Card Interest

creditconcept — Sun, 18 Jan 2015 04:15:18 GMT

Hey guys thank you!

Ok, and not I dont have a 60% card. I just made those numbers up to explain my question. What it really is is like Ill usually have some balance like $1342.76 and then have like $3,624.67 in available credit but Ill also have like a $33.22 interest charge, and I can never balance the numbers right to figure out if Interest was counting againans my available credit.

But now I know, thanks!

Re: Credit Card Interest

Anonymous — Sun, 18 Jan 2015 04:16:59 GMT

475 available, but in your example hopefully you would have made a payment at some point. I know your example was hypothetical, but in your example it is a 60% APR. But lets say it was a high-ish APR of 22.99% on a $500 balance. Your interest charged would be $9.58/month after you left a balance on for a month beyond your statement cut which displayed the $500 purchase. Your minimum payment would probably be $25 dollars, so assuming you made a payment, you would still have more available credit than you had when the statement cut. Sorry I re-read this and it could be confusing, I am not an adequate teacher... Someone else can likely simplify it.

Re: Credit Card Interest

Anonymous — Sun, 18 Jan 2015 04:18:43 GMT

@Anonymous wrote:
@creditconcept wrote:
Hello All,
I have a simple question today; Are interest charges subtracted from your available credit and added to your balance?
For example, if I have a $1000 limit with $500 balance, and $25 in interest charges, my new balance is $525, but what im wondering is do I still have $500 available credit or is it now $475 because of the interest charge?
Thanks!
Interest is counted against credit limit.

Edit: What the heck CC do you have that charges 60% APR?

It's a new credit card, pay-day-loan CC. High APR but really good bennies...

Re: Credit Card Interest

Anonymous — Sun, 18 Jan 2015 04:23:54 GMT

@Anonymous wrote:
@creditconcept wrote:
Hello All,
I have a simple question today; Are interest charges subtracted from your available credit and added to your balance?
For example, if I have a $1000 limit with $500 balance, and $25 in interest charges, my new balance is $525, but what im wondering is do I still have $500 available credit or is it now $475 because of the interest charge?
Thanks!
Interest is counted against credit limit.

Edit: What the heck CC do you have that charges 60% APR?

Hey, don't talk about First Premier that way!

Re: Credit Card Interest

Anonymous — Sun, 18 Jan 2015 04:24:33 GMT

@Anonymous wrote:
@Anonymous wrote:
@creditconcept wrote:
Hello All,
I have a simple question today; Are interest charges subtracted from your available credit and added to your balance?
For example, if I have a $1000 limit with $500 balance, and $25 in interest charges, my new balance is $525, but what im wondering is do I still have $500 available credit or is it now $475 because of the interest charge?
Thanks!
Interest is counted against credit limit.

Edit: What the heck CC do you have that charges 60% APR?
It's a new credit card, pay-day-loan CC. High APR but really good bennies...

Every day you're late, a 6'8 400lb ex-linebacker comes to your house and punches a hole through your wall.