Credit Card Interest Is the sum of Interest on credit Card which is broken down by some type of transaction such as purchases, balance transfer and also cash advances transactions. The card holder will be charged with interest if the call holder pay less than the full balance that informed in the billing statement. a card holder also will be charged with interest if the pay after the due date.
The differences between retail transactions interest and cash advances interest.
If you made only retail transactions or purchases in one cycle or one period and after the billing statement printed day, you pay full balance, you will not be charged for interest. But if you have one cash advance transaction in that period you will be charged for interest although you pay full balance. This is happened because cash advances transaction have no grace period. which means they start accruing interest as soon as the transactions is made.
How to stop interest from cash advances transactions in credit card?
To stop the interest charge you should pay full balance two periods or two cycle, if you don't make a new cash advance transaction you will not be charged for cash advances interest in the third cycle.
How about interest charge from Transfer Balance?
Transfer Balance is just the same as cash advances transaction. It has no grace period.
How is credit card interest calculated?
Maybe there are differences formulas of how bank count their costumer interests especially the amount of the interest rate percentage. But, most of bank use this formula to count the interest amount.
Interest Rate x amount of Transaction x 12 x(how many days from day transaction to your billing printed day + 1 ) DIVIDED 365
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