14.4 %. A+
14.4%
1.5 or 1.50
1.75%
That's an effective annual rate of 15.39%, thanks to the magic of compound interest (simple multiplication gives 14.4%, but this neglects the fact that if you don't pay it off each month you wind up paying interest on interest).
It is 100*[(1+18/100)^(1/12) - 1] % = 100*[(1.18)^(1/12) - 1] % = 100*[1.01389 - 1] % = 100*[0.01389] = 1.389 %
14.4%
1.5 or 1.50
1.75%
1.75%. A+
That's an effective annual rate of 15.39%, thanks to the magic of compound interest (simple multiplication gives 14.4%, but this neglects the fact that if you don't pay it off each month you wind up paying interest on interest).
You wouldn't want a high interest rate, necessarily. However, if you had a choice between a credit card with an annual fee and one without, you would need to see how the interest rates compared. A person with a very low level of debt, such as one who paid out the credit card balance monthly, the high interest rate might not be a deciding factor compared to the annual fee. Remember, the annual fee will also have interest charged on it.
It is 100*[(1+18/100)^(1/12) - 1] % = 100*[(1.18)^(1/12) - 1] % = 100*[1.01389 - 1] % = 100*[0.01389] = 1.389 %
The two main benefits I could think of is that it has a low monthly interest rate. The other benefit is that there is no annual fee, you need good credit though.
Annual interest is interest that accumulates every year. This is a predetermined percentage that is added to a loan or credit card payment.
how is line of credit interest calculated
Monthly
Compare Credit Cards: Once you have zeroed in on some card issuers, it's the time to compare them. Interest rates, interest free period, annual and monthly fees are amongst the things you should check out, before you make up your mind for a particular credit card.