What is the Interest Fee that I see on my Credit Card account?
Interest is charged on a monthly basis on outstanding balances on your credit card. The interest rate that you are paying will be stated in the letter sent with the Terms and Conditions you got when you first signed up to the credit card. It can also be found on your statement.
Different transactions can incur different interest rates depending on the credit card you have.
If you aren't on any promotional deals then interest will start to be incurred on regular purchases after the payment date of the statement it appears on. This means you can get up to 56 days of free credit.
Cash advances, where you take money out as cash on your credit card, are slightly different because you will incur interest from the day that the cash is taken out. This should be considered when using your card to withdraw cash.
This information is separated out on your statements so that you can see how much you are paying on interest for the different types of transactions you are making.
