How to Calculate Credit Card Interest

Video Transcript

"Hi so you have been thinking about how to calculate the rate on your credit cards. No problem I'll be able to answer that for you. My name is Adriel Torres and I'm the owner of Ultimate credit today dot com. The rate on your credit card was given to you originally when you signed the paper work to obtain the credit card from the credit card company or the lender or the bank whoever it may be, it's usually fixed and the payment on your credit card is based on what you owe versus what the high credit is. So if your high credit is three thousand but you only owe a thousand dollars on your credit, that's what you are paying the rate on. And again that rate was given to you by your credit card company. Now some credit card companies will offer no transfer zero interest which means that if you have balance with other credit cards you can transfer those balances to the new credit card and for a period of, for the most part there's six months you don't have to pay any interest on those, on that balance. But again don't forget you are going to have a minimum payment that you have to pay every month on the balance whatever that may be. Ok and that's how you calculate the rate on your credit card and if you don't know the rate you can always call the credit card company, that way they'll give you the rate that you have currently. Again my name is Adriel Torres and I'm the owner of ultimate credit today dot com. Thank you very much."