Over 110 UK credit cards independently reviewed by Fiscus Credit Cards
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Credit Card Interest
Interest on credit cards is usually added to your statement at the end of each
month, although the calculations are generally worked out on a daily basis.
Credit card interest is more complex to understand because different balances
have different rates of interest (APR), and you also get an interest-free period
if you pay the balance in full each month.
- What is APR? - A
clear explanation of Annual Percentage Rate.
Different rates of credit card interest
You can usually expect your credit card issuer to charge different levels of
interest, depending on how you use your plastic. These are typically banded into
the following three rates (lowest interest first):
- Balance transfer APR - Charged
when transferring debt from other cards onto your new credit card.
- Purchase APR - Accumulated when
using your credit card in shops and other retailers.
- Cash Advance APR -
Payable when you use your credit card for ATM cash withdrawals.
- Order of Payments - The order in
which your credit card balance is paid off can have an impact on the APR you
pay.
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