BANKING AFFAIRS

Detailed explanation-1: -Credit cards charge interest on any balances that you don’t pay by the due date each month. When you carry a balance from month to month, interest is accrued on a daily basis, based on what’s called the Daily Periodic Rate (DPR).

Detailed explanation-2: -The interest charged on purchases and cash advances on credit cards is computed in the same way. Cash advances on credit cards normally cost you interest from the date of the advance and also a transaction fee of 1 to 2 percent.

Detailed explanation-3: -Your credit card APR is the amount of interest you’ll be required to pay if you don’t pay off your balance in full each month. This percentage typically ranges from around 12% to 26% depending on a variety of factors, including your credit score and the type of credit card you have.

Detailed explanation-4: -Credit card interest compounds daily, which means the interest rate applies to your whole balance at the end of each day, including unpaid interest charges from previous days. The average APR among new credit card offers is 20.16%.