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
You have to pay the statement balance to avoid interest. If you pay the minimum you will be paying interest. It’s typically calculated using average daily balance. They look at your average balance for that day, calculate the interest for that day, and at the end of the month it’s added to your total.
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