Writfy

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Describe the Advantage of VPN Industry Network Solution?

    March 19, 2023

    Everything You Need To Know About Fat Burners

    March 19, 2023

    Elegant Royal Blue Quinceanera Dresses

    March 18, 2023
    Facebook Twitter Instagram
    Trending
    • Describe the Advantage of VPN Industry Network Solution?
    • Everything You Need To Know About Fat Burners
    • Elegant Royal Blue Quinceanera Dresses
    • Why designers are ditching ceiling lights for wall lights in the bathroom
    • How to Care for Your Teen After Their Wisdom Teeth Removal Surgery
    • The Pros and Cons of an Assault Lawyer
    • Estate Planning Lawyer and the Services he can Render to you
    • The Home Depot’s Best Truck Rentals
    Facebook Twitter Instagram YouTube
    WritfyWritfy
    • Home
    • Business
    • Technology
    • Lifestyle
      • Health
      • Fashion
      • Travel
    • Education

      Everything To Know About Flinders University Student Accommodation

      March 6, 2023

      How a Fashion Design Course Can Help You Advance Your Career in 2023?

      March 2, 2023

      Why Study LLM – Scope and Career Opportunity after LLM

      February 1, 2023

      What are Data Structures Courses?

      January 19, 2023

      Self-Education Motivation For Students Of Through Social Activities

      January 7, 2023
    • Home Improvement
    • More
      • Recipe
      • Daily Bites
      • Gaming
      • Entertainment
    • Contact Us
    Writfy
    Home » Credit Card Interest Rates: Everything You Need to Know
    Business

    Credit Card Interest Rates: Everything You Need to Know

    Abdul WaheedBy Abdul WaheedMay 23, 2022Updated:October 7, 2022No Comments4 Mins Read
    Credit Card Interest Rates: Everything You Need to Know
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Last Updated on October 7, 2022 by tabraiz579

    Many users have a common understanding of credit card interest rates. It may seem complicated, but it is very easy to understand. Continue reading the article to understand credit cards and their interest rates better. 

    Credit card issuers charge an interest rate called a finance charge on the borrowed amount, called the interest rate. The interest rate is different for different lenders and depends on the credit card type. Continue reading to understand more about credit card interest rates

    How to calculate the interest rate?

    In India, the interest rate is calculated as per the Annual Percentage Rate, APR. This interest rate is calculated for the entire year instead of on a monthly basis. However, when the interest rate for monthly transactions is calculated, then MPR is applied, which is the Monthly Percentage Rate. The MPR and the APR vary between lenders and the kind of credit card. Hence, it is important to know about credit card interest rates. You must inquire about your credit card’s APR when you apply for them. 

    What transactions cause interest charges?

    Here are some situations when credit card issuers charge interest on transactions made by credit cards-

    • If you only pay the minimum due amount for the monthly cycle. 
    • If you fail to clear the outstanding amount before the due date has passed. 
    • If you use your card for cash withdrawal. That means interest is charged when you use your card at the ATM to withdraw any money. 
    • If you repay an amount that is less than the minimum amount. 
    • If you carry forward any amount that is due next month. However, if you clear all outstanding amounts before the due date, you will not have to pay any charges. 

    What influences the rate of interest for credit cards?

    Credit card companies consider your credit score as one of the primary factors when deciding on the interest rate. However, other factors also influence the rate of interest. Some factors are listed below-

    1. Outstanding amount

    This amount is your borrowed money. The issuers will check your credit limit and the amount you may have used while checking the rate of interest. If you are responsible for your finance, you will have a low credit ratio. However, if your ratio is high, you will be charged a high-interest rate on your card. 

    2. Payment history

    Your repayment history tells the banks everything they need to know about your creditworthiness and your capacity to settle your dues. Suppose a credit card issuer like Bajaj Finserv sees you have no or minimum outstanding credit and have made regular repayments. In that case, you will not only have a good credit score but also get offers for low-interest rate credit cards. However, if you have ever defaulted on payments, then your credit score will be low, and you will attract high-interest credit cards. 

    Apart from these factors, the kind of credit and the credit history’s length also affect the interest rate. 

    Read More: 5 Major Reasons Why You Should Improve Your Credit Score

    Using an interest calculator

    It can be tough if you try to calculate your credit cards interest without a calculator. For ease of experience, Bajaj Finserv offers an interest rate calculator on its website. You can easily enter the details in the calculator and use it. It automatically shows how much interest will be paid and the total amount that will be paid. 

    If you already have a balance on your credit card, you can transfer that amount to a low-interest credit card. Many cards with low credit card interest rates offer periods from 6 to 18 months where they do not charge any interest. That can help you save money and pay the balance without increasing the amount. Just remember to continue paying so you do not stall and increase your interest rate.

    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
    Previous ArticleAfrican Life in Gauguin’s Paintings
    Next Article Quick & Easy Steps to Buy Litecoin
    Abdul Waheed

    Related Posts

    How to Write SEO Content That Gets You More Business

    March 9, 2023

    The ten best jobs in finance

    January 19, 2023

    Strategic HR Management: A Necessity in Today’s Workplace 

    January 5, 2023

    Comments are closed.

    Archives
    • March 2023
    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    Categories
    • Automobile
    • Business
    • Daily Bites
    • Digital Marketing
    • Education
    • Entertainment
    • Fashion
    • Gaming
    • Health
    • Home Improvement
    • Law
    • Lifestyle
    • Pets
    • Real Estate
    • Recipe
    • Sport
    • Technology
    • Travel
    Meta
    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org
    Our Picks
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Don't Miss
    Technology

    Describe the Advantage of VPN Industry Network Solution?

    By Hamza KhalidMarch 19, 20230

    VPN can securely connect a user to a company’s internal network or to the public…

    Everything You Need To Know About Fat Burners

    March 19, 2023

    Elegant Royal Blue Quinceanera Dresses

    March 18, 2023

    Why designers are ditching ceiling lights for wall lights in the bathroom

    March 17, 2023

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    • Facebook
    • GitHub
    • Instagram
    • Pinterest
    • Twitter
    • YouTube
    About
    • Privacy Policy
    • Disclaimer
    • About Us
    • Contact Us
    About Us
    About Us

    Welcome to writfy.com, here you will find interesting articles based on your interest. We’re committed to providing up to date information.

    Our Picks
    New Comments
      Facebook Twitter Instagram Pinterest
      • Home
      • Privacy Policy
      • Disclaimer
      • About Us
      • Contact Us
      © 2023 All right reserved by Writfy.

      Type above and press Enter to search. Press Esc to cancel.