Oops it That s it Ima go be a stripper They get mad cash 72



Figure out APR before deciding to keep some balance on your credit card

The annual percentage rate (APR) endures for the curiosity rate charged on an outstanding credit card balance. This interest or finance cost is the price to borrowing cash from the credit card company. A better APR will result in better finance charges. As any rule, APR for cash advances remains constantly four to five percent higher than that with regular purchases. APR normally represents a variable rate that rely on the excellent rate published with the Wall Street Journal.

Difficulty: Uncomplicated

Instructions

Things You'll Need

Calculator

1 Locate your credit card terms and agreement assertion that is typically sent together by your new credit card.

2 Appear for the section generally entitled "Finance Charges" also read how APRs are computed to your credit card accounts. Typically, APRs are specified separately for purchases plus cash advances similar as: the excellent rate as well as any certain percentage; for instance, the excellent rate plus 13.99 percent for purchases and the prime rate plus 17.99 percent with cash advances.

3 Available any Web browser such as Internet Explorer or Firefox on your PC also navigate to a web page that displays the prime rate, such like website. In that case read the latest reported prime rate. For example, as of June 2010 the prime rate is 3.25 percent.

4 Sum up the prime rate and the percent number from the credit card agreement (Stage 2) to calculate respective APRs. In our illustration, the APR for purchases is 3.25 + 13.99 = 17.24 percent, and APR to cash advances yous 3.25 + 17.99 = 21.24 percent.

5 Separate APR by way of 12 to calculate monthly percentage rates; in our illustration, the monthly rates for purchases also cash sophisticated will be 17.24 / 12 or 1.44 percent, and 21.24 / 12 or 1.77 percent.

Tips & Warnings

Call the credit card consumer service to request some copy of the terms and agreement declaration if you cannot find it.

References

Credit Card Service:Understanding APR Bankrate:Wall Road Journal Prime Rate

Resources

Money Cafe: Prime rate