A credit card is a rectangular plastic card issued by financial institutions, which lets you borrow funds from a pre-approved limit to pay for your purchases. The limit is decided by the institution issuing the card based on your credit score and history.
When used responsibly, credit cards can be valuable tools for earning rewards, traveling, handling emergencies or unplanned expenses, and building credit.
Formula to calculate credit card interest.
A billing cycle, or billing period, is the length of time between the last statement closing date and the next.
Suppose your credit card’s average daily balance is $4,000, and your daily rate is 0.00005%, calculate your interest rate if your billing period is 20 days.
Therefore, your credit card interest i $4.