Understanding Credit Card Interest Rates and Fees
All credit cards have a different interest-free grace period of 20 to 50 days during which you won't be penalized for using your card to make payments. However, there are some circumstances where credit card interest rates do apply, particularly if you don't settle your credit card balance in full or use your card to make a cash withdrawal. What is credit card interest rate? The cost of transactions that are not covered by an interest-free period is known as the financing charge or credit card interest rate . It differs across different credit cards from the same issuer as well as between other card issuers. These fees are usage-based, as opposed to annual or joining fees like conventional credit card fees and are therefore only applied when you don't pay your credit card account in full. You should be informed of the interest rate charged on a credit card, as well as when and how much it is charged, before applying for one. Understanding Credit Card Interest Rates and F...