If you pay your credit card in full every month, does that mean the interest rate doesn't apply? Is there a website that explains how credit cards work and what we should and should not be doing with credit cards?
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Mr.Positive
ANSWERS: 5
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each bank should have a booklet on how the there fees work. but yes you need to fully pay it off each month not to occur interest.
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The agreement you sign will have all the details, but normally you do not pay interest if you pay your card every month.
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There is no interest on regular purchases if you pay it off in full every month. There will be interest and fees with a cash advance. The interest begins to accumulate on the day you withdraw the cash.
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There is no interest when you pay the entire balance. If you don't then the interest is on the entire amount. If you pay the entire balance except for one cent you still pay interest on everything. The amount that interest is charged on is very complicated. Sometimes it is on the final balance and at times it can be on an average balance. You must read the contract. If you plan to pay the entire balance then look for a free card that gives cash back. I do not even know the rate on my card and don't care.
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Typically the interest only applies to unpaid balances. There are "grace" periods that the CC companies will carry your balance. Of course they hope you keep a balance: http://www.youtube.com/watch?v=ZHsKhC2_3Ic
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