SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/interest-daily-balance

When does a credit card usually add interest if you carry a balance?

Daily, often on your average daily balance.

  1. Once a year
  2. Daily ✔
  3. Only if you miss two payments

Why: CFPB says many issuers calculate interest daily from the average daily balance. Paying sooner can cost less interest if you do not have a grace period.

Huh, didn't know that: Cash advances and purchases can have different rates on the same card.

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Why did the number stay home? It had too many figures.
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Sources

  1. CFPB: How credit card interest is calculated https://www.consumerfinance.gov/ask-cfpb/how-does-my-credit-card-company-calculate-the-amount-of-interest-i-owe-en-51/

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