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When is interest charged on your Credit Card?

Credit Card Interest Charged

While most people aim to keep their credit car cost at $0 each month, we understand that sometimes things pop up that can weigh heavily on your credit balance. If you carry a balance on your credit card, you can end up incurring additional costs in the form of interest.

Interest on the balance of your credit card is charged by your issuer whenever you carry a balance beyond its grace period. This charge is recurring as well. For each month you don’t pay off your balance in full, a finance charge will be added to your balance.

[Read more: How does your credit balance affect your credit score?]

credit cardWhen you’re charged credit card interest

Whenever you start a billing cycle with a balance on your credit card, you will be charged for the interested. You’ll also be charged any month you make a cash advance or any other type of transaction that doesn’t have a grace period.

You won’t be charged on your purchases if you have a balance of zero at the beginning of your billing cycle. If you pay the full balance within the grace period, you will avoid paying interest. Additionally, some credit cards offer promotional 0% APR which can prolong any interest charges made to your account.

The grace period on your card will start on the date the billing cycle ends and last about 21-27 days, depending on your credit card terms.

For more information on your credit score and card, be sure to check out the rest of our blog! And if you have any questions about getting behind the wheel of one of our vehicles here at Broadway Auto Credit, feel free to give us a call or contact us online. We’ll be happy to work with you to find a model that works with your budget and lifestyle.