credit card question for those in the US

[Robert87 2]

hello,

i have a question. is credit card interest in the USA are quoted per annum or per month?

ill try to give an exmaple, and please let me know if my computation and understanding is correct..

say, my total credit card bill is 3,000.00 USD. and it has a 20% interest rate( assuming that 20% is per annum), so my computed total balance + interest rate is 3,600. and if i decided to have it in 24 months term, ( 3,000 + 20%+20%= 4,200 ( is my computation correct?)

and if so my minimum monthly bill is 175 dollars, ( 4,200 divided by 24 months). is this correct computation?

im just so curious and i cant find a sample computation of credit card bills in the USA. and please enlighten me if the interest rates are on monthly or yearly basis.. thanks...

to the moderator: i know i posted this on the wrong forum. please move it to the appropriate forum. thanks

[stringged 1]

wrong forum? wrong site perhaps?

[Deputy Purple 1,294]

it's not that simple as interest is compounded monthly though calculated annually plus if you're making payments then the balance is reduced each month.

[damulag 26]

Go to the following site, they have online calculators that can help you.

bank rate

Most credit cards calculate the minimun payment as a percentage of the balance, between 1% and 4% plus interest. The actual numbers are dependent upon the issuer and are usually explained on the back of the statement. The link above will allow you to play with your payments to determine what affect paying extra will do the the balance. Your statement will also tell you how long you will be paying and how much interest you will pay if you only pay the minimum due each month.