ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Step 1: Find your current APR and balance in your credit card statement. Step 2: Divide your current APR by 12 (for the twelve months of the year) to find your monthly periodic rate. Step 3: Multiply that number with the amount of your current balance.

Detailed explanation-2: -Pros of paying your credit card off in full You’ll avoid paying interest if you pay your credit card balance off in full each month by the due date. Establish a better credit score: Using your credit card and repaying your balance will help you establish a good payment history.

Detailed explanation-3: -If you’d like to avoid paying interest on your credit card, you have two options. You can pay off your balance before your grace period ends, or you can apply for a zero-interest credit card that offers 0 percent APR on purchases for up to 21 months.

Detailed explanation-4: -Residual interest is the interest that can sometimes build when you’re carrying a balance without a grace period. Unless you pay your full balance on or before the exact statement closing date, residual interest can be charged for the days that pass between that date and the date your payment is actually received.