Credit Card Question

[BigB]

Does anybody know how to calculate interest rates on a credit card? Say I have a card with two different rates, one rate for purchases and another for cash advances, which are 9.9% and 19.99% respectively. With a balance if $1,300 on the lower and $310 on the higher one how do they calculate the two rates?

 

[zionoverfire]

take the anual interest rate, divide by 12 and multiply by your balance to figure out the monthly interest charge.

 

[dtcarson]

And of course, whichever has the *lower* interest rate, that's [generally] what they will apply your payments to first.

 

[ryanbph]

also, with cash advances, it isn't a monthly rate, interest accruse daily in most cases. NO GRACE PERIOD.

 

[dude2003]

your interest for a 31 month will be 11.03 for the 1300 and 5.26 for the 310. if you pay 20 for the statement then 16.29 will be applied to interest and the 3.71 will go towards the 1300. of course if you pay more than 31 days after you got your cash advance then your interest will be higher than 5.26, just like someone who said that cash advances don't have a grace period.