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Understanding Interest & APR - Text Version
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Understanding Interest and APR
When you use your credit card, charges like interest are normally added to the amount you've borrowed - Just like that.
And although most providers will wait up to 56 days before charging you interest on purchases, the interest rate is different depending on how you use your card
Exactly. And that interest is often higher and charged immediately
Together, the interest, fees, and what you've spent, add up to the total amount you'll have to pay back
And the way it's all calculated is a real science
But because we're not all rocket scientists like this chap - credit card providers wrap up all those difficult numbers and sums Into a handy thing called the APR
The A. P. R. makes it easy to compare different cards before deciding which one is best for you
It's based on the purchase interest rate and includes things like annual fees.
Although cash withdrawal charges and default fees are not included