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Calculate Credit Card Interest

The costs associated with credit card interest can break your budget, as the cost of gas. interest credit card can be mystery to many consumers who do not understand how the interest is actually calculated. Once you understand how credit card interest is determined, this can motivate you to stop using your credit card as often.

T look at your credit card this month and find out if you had to balance previous month. If balance was zero, there will be no interest credit card buys made this month. Find out what interest rate your credit card is charged annually.

Calculate Credit Card Interest

This should be notated on your credit card statement. You may have 23.99 percent or 16.5 percent annual interest. Determine system your credit card company uses for calculating interest charges.

Most credit card companies use average daily balance method, where interest accrues daily. Figure out your average daily balance for month. Add up balance for each day of month, and then divide by number of days in month.

This will give you average daily balance. Determine amount of interest that is charged to you each day of month. Take annual percentage rate of interest and divide it by 365.

This gives you what is called periodic rate, or daily rate of interest.

We hope this information about “How to Calculate Credit Card Interest” is really helpful to you as well as other information related to credit card

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How to Calculate Credit Card Interest