I’ve gotten a mixed of information among friends, and internet. I was hoping to solidify understanding using my current credit card balance as an example. So as long as I pay the minimum I will not have to pay interest? If I do have to pay interest would I be paying 29.99%/12 for however much I owe by the end of the month? Or does it accumulate and charge me at the end of the year?
Current Balance: $2161
Remaining Statement Balance: $0
Next Closing Date April 9th
Payment due: $0
Purchase APR: 27.49%
Cash advance APR: 29.99%
In: Economics
Your lender will give you a statement balance and a minimum payment. If you pay the full statement balance, you won’t be charged interest. If you pay just the minimum (or anything less than the full balance), you’ll be charged interest.
If you don’t pay the minimum balance at all, you’ll have a missed payment and will be further penalized for that, on top of the interest you have already accrued.
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