Credit Card Interest

What do I need to know about credit card interest?

When you use a credit card, the credit card lender loans you money until you repay the full amount. During this time when you borrow money, you will be charged interest on the total amount owing.

The amount of interest charged varies between lenders based on the credit card interest rate.

There are generally two types of credit card interest rates, purchase interest and cash advance interest.

Purchase rate is used when you charge a purchase to a credit card like when you use your credit card at the local shops or shopping online.

Cash advance interest is charges when you draw cash directly through your credit card. Cash advances usually have a higher interest rate and are not recommended for most credit cards. see best cash advance credit cards.

The Interest rate charge is made using a compound interest formula. What compound interest does is add interest to the principle daily. Every day your balance owing grows because of this interest added.

If you don’t want to be paying too much for borrowing money, then the credit card interest rate should be as low as possible. See the best credit cards with low interest rates for Australians you can securely apply for online.

Credit Card Interest Ordered by Lowest Rate:

		Purchase % p.a.	Annual Fee	Interest Free	Balance Transfer
	Low Rate MasterCard 0% p.a. on purchases for the first 3 months	13.24% p.a.	$58.00	up to 55 days	-
	StGeorge Vertigo MasterCard 2.99% p.a. balance transfer rate for up to 6 months!	13.24% p.a.	$55.00	up to 55 days	2.99% p.a. for 6 mths