How does credit card interest rate work?

I have always paid off my credit card balances in full every month, but on the next billing statement I won’t be able to. My current balance is $1,413. My credit card interest rate is 14.49%. Is it true that I will be charged interest on my full balance even if I pay half the balance? I called my credit card company and the rep said yes, but I don’t think she was very knowledgeable.

By | 2013-08-24T07:19:09+00:00 August 24th, 2013|Mortgages Home Loans Interest Rate|3 Comments

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  1. yeah August 24, 2013 at 7:42 AM - Reply

    That is an excellent question – I hope someone answers this!

  2. I_think$ August 24, 2013 at 7:32 AM - Reply

    The cc will charge you interest next month (i.e. after they learn you did not send in the full payment) for each purchase from the day of purchase until you paid them some money. Then they will charge you interest on the balance [ $706.50 ] for the whole month until the next billing cycle, plus interest on each new purchase from time of purchase until cut-off date (and then go to first line). They usually use a daily balance average and charge interest daily. So your answer is sort of yes, sort of no.

  3. anon August 24, 2013 at 7:23 AM - Reply

    it works in the banks favor

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