Credit card 24% PA interest rate=?

• Marco_Simone

  9 Oct 08, 09:35

  I just applied for a CC.

  If I spent $100 on credit,I have to pay back $124 by the next billing date?

  Or is it 2% per month since it is 24% per anumn?

  If I pay the minimum sum required,am I still required to pay interest? 

   

  Sorry for the noob question,thanks!

• dragg

  9 Oct 08, 09:42

  they charge interest only on the amount unpaid after the due date.

  if you can help it always pay the full amount before its due.

   

• the Bear

  9 Oct 08, 09:45

  here's a tip..

  pay them in full and on time = no interest..

  then you get a pile of perks in terms of points or redeemables..

  when they try to charge you subscription, tell them you don't want already... they will give you the thing "another year free"

  accept it..

  if they do not, just stop using it, when it's time to pay the bill, cut it up and send with payment in the envelope provided...

  get another card from another company... it'll probably be free for 3 years too...

  repeat indefinitely..

   

• maurizio13

  9 Oct 08, 10:12

   

  Citibank charges interest on the full amount due even if you pay the full amount short of ten dollars. I forgot the exact amount of my bill, paid what I thought was the full amount, ended up being charged alot of interest.

   

   

• the Bear

  9 Oct 08, 10:16

  Originally posted by maurizio13:

   

  Citibank charges interest on the full amount due even if you pay the full amount short of ten dollars. I forgot the exact amount of my bill, paid what I thought was the full amount, ended up being charged alot of interest.

   

   

  same thing happened to my friend years ago on his UOB card...

  the idiot paid 1cent less..

  he went to kpkb so much that they relented

• maurizio13

  9 Oct 08, 10:24

  Originally posted by the Bear:

  same thing happened to my friend years ago on his UOB card...

  the idiot paid 1cent less..

  he went to kpkb so much that they relented

   

  i didn't kpkb so much, but then again it was my fault, so i ll pay lor.

   

  i just told them it's only short of around $10, you want to charge me interest for the whole sum, then they say it's in the terms and condition. think i paid like close to $100 for it, nb, from then on, i very careful with the amount.

   

  it's an "honest mistake" but i paid for it.

   

• AnotherHIke?

  10 Oct 08, 23:21

  dont ever pay subscription, all you need is to call up and they will waive off.  Normally they will check to see whether there is at least 3 transaction or not, but i did try b4 with 0 transaction for that year and got it renew free.

  even when it is overdue, it is not very often and only for a few days, try calling them and give a dumb reason, you will be surprise they will waive off the interest.

  upgrade your card for better promotion and discount.  Some restaurant give big discount when for certain promotion period, especially buffet which is as high as 1 for 1 but only for platinum for a certain card.  I only have a gold card for that bank so i called up for an upgrade and within 2 days i got the new card without charges so that i can get the the discount.

  if use wisely, credit card can be good.  But too bad most of them time it is misuse and end up heavily in debt.  I have a friend who pays 40% of his salary every month which is  just enough to pay for the interest only.