credit cards for dummies apr
Bankruptcy for Dummies – Part 1
How does credit card interest work?
I have two credit cards, one is used strictly for work related travel and the other is an emergency card that never gets used. Neither card carries a balance, as soon as I return from traveling, I submit an expense report and pay off my “work” card.
I am trying to understand how APR and monthly interest is applied to me, if it does at all. I am kind of dumb when it comes to credit stuff. Can someone explain or point me to a “credit cards for dummies” text?
Thank you in advance!
Since neither card carries a balance, you shouldn’t have to worry 
Basically you make charges through the month until your statement posts. That is typically the same day every month, for example, the 4th. So say you charged up $600 and the statement closed today, Feb 4th. Then you get at least 3 weeks after that date to pay your bill. Anything left on the balance after the due date, say Feb 25th, will be subject to interest. The interest is calculated based on the average daily balance. So if you paid $200 but have $400 left after the due date, when the statement closes on Mar 4th, you’ll be charged interest on $400 for 7 days. If you pay it off immediately when the statement cuts, then you’ll be in the clear the next time the statement closes – no interest charged. If you only pay part of it, the rest will continue collecting interest.