Credit Card
Credit Card | Interest Rate per month | Annual Percentage Rate (APR) | |
HSBC Visa Platinum Credit Card | 3.3% | 39.6% | |
HDFC Bank Regalia Credit Card | 3.49% | 41.88% | |
American Express Membership Rewards Credit Card | 3.5% | 42% | |
3.35% | 40.2% | ||
ICICI Bank Platinum Chip Credit Card | 3.40% | 40.8% | |
American Express Platinum Reserve Credit Card | 3.5% | 42% | |
HDFC Regalia First Credit Card | 3.49% | 41.88% | |
SBI Card Elite | 3.35% | 40.2% | |
Citi PremierMiles® Credit Card | 3.40% | 40.8% | |
Standard Chartered Manhattan Platinum Credit Card | 3.49% | 41.88% | |
Bank | Credit Card | Interest Rate p.m. | |
SBI | SBI Advantage Platinum Credit Card | 1.99% | |
ICICI | ICICI Bank Instant Platinum Credit Card | 2.49% | |
HDFC | HDFC Infinia Credit Card | 1.99% | |
Citibank | Jet Airways Citibank Titanium Credit Card | 2.50% | |
ICICI | ICICI Bank Instant Gold Credit Card | 2.49% | |
SBI | SBI Advantage Gold & More Credit Card | 1.99% | |
Citibank | Citibank Rewards Credit Card | 3.15% | |
When is Interest Charged on Credit Cards?
As mentioned above, credit card interest rate is applicable only when you have outstanding amount in your account or when you have taken a cash advance. The following situations may lead to this:
- When you pay only the minimum amount due
- When you pay any amount lower than the total amount due
- When you make no payment at all
- When
\ you have withdrawn cash from an ATM using your credit card
“When you carry forward outstanding balances to the next billing cycle, the new purchases you make are not eligible for the interest-free period. This means that you will have to pay interest on new purchases from the first day onwards.”
Credit Card Interest-free Period
Credit cards, usually, offer up to 50 days of interest-free period to the user. However, this does not mean that all transactions will
enjoy the same interest-free period. It depends on the day you make such a transaction.
Let’s understand this with the help of an example.
Say the statement date for your credit card is the 20th of every
month and the bill is due on the 10thof next month. So, if you make a transaction on the 10th of the previous month, then this transaction will enjoy the full 50-day interest-free period. However, if you make a purchase on the 10th of the current month, that is, 10 days before the statement date, this transaction will only get the 10-days worth of interest-free period. Similarly, a purchase made on the 19th will only get 1 day of the interest-free period.
The interest-free period is not applicable to:
- Cash withdrawal
- Every transaction, if you carry forward your balances to the next cycle
Credit Card EMI Calculator
There are a number of factors that affect your credit card bill. It is very difficult to calculate this amount manually. To make it easier for the customers, a number of banks provide the Credit Card EMI Calculator tool on their website. You have to fill in the information in the boxes and it will show your bill amount for the month.
FAQs
What is the typical interest rate on a credit card?
Interest rates on credit cards usually range from 2.5% to 3.5% per month. However, this may vary from issuer to issuer and also from one card to another.
How does the interest rate on a credit card work?
Interest is compounded on the outstanding balance on a daily basis. This means that at the end of each day, the interest rate is calculated for the day based on the amount that stands unpaid on your account at the end of the day. The charge, though minimal, is added to your next day’s balance when the interest will be calculated for the next day.
When is interest charged on credit card?
Interest is applicable on your credit card when you roll over an outstanding amount to the next billing cycle. In this case, new purchases will also attract interest from
the first day onwards.
When should I pay my credit card bill to avoid interest?
You must always pay your credit card bill in full on or before the due date in order to avoid paying any interest on the balance.
Will interest be charged even if I pay the minimum amount due?
Yes. Interest will be charged on the remaining balance even after you pay the minimum amount