Claire de Lune asked:
I’m thinking of getting a new credit card. Even though I’ve made every payment on time and in full my current card is starting to add all kinds of fees. On the application, under “Interest Rates and Interest Charges”, it says “If you are charged periodic interest, the charge will be no less than $1.50″. What is “periodic interest”? The application does not explain what this is.
Joshua
I’m thinking of getting a new credit card. Even though I’ve made every payment on time and in full my current card is starting to add all kinds of fees. On the application, under “Interest Rates and Interest Charges”, it says “If you are charged periodic interest, the charge will be no less than $1.50″. What is “periodic interest”? The application does not explain what this is.
Joshua
Jorge
Periodic interest is interest charged for a certain period of time, such as a month. What this means if that even if you have only a $1.00 balance you will be charged at least $1.50 in interest for that period or month.
In this example, it would work out to a monthly rate of 150% or an annual rate of 1,800%.
Comment by Gorkbark Porkduke Gefunken Fubar — August 31, 2010 @ 2:51 am