how do credit card fees/percentages work

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Does any of that jizz matter if I always pay it off on time?

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Anonymous 0 Comments

It depends… But for most credit cards, you only owe interest if you carry a balance. So you spend 100 bucks in a month, you get the bill that says your balance is 100, and your minimum payment is maybe 15 or 20. If you pay 100 (in time) then there are no fees or interest. If you pay say 50, then you will pay interest (likely more than 20 percent a year) on the 50 dollar balance. If you pay late, you will also pay fees on top of that. You have to pay the interest before the principal. So even if you spend 0, and pay 50 next month, you will still have a balance.

People get fucked with credit cards. By far the best thing is to fully pay off your balance. Many can’t. And also many snowball with the idea “well, I already have a balance of 500… What’s another 200?”. They don’t make the interest super easy to see. Your next bill will just say your balance is this and your minimum is this. You have to dig a bit to see, holy shit there is a ton of interest in each bill. Credit cards wreck many people.

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