Credit Card Interest - Per Month or Per Year?

Question

I have a quick question. I am enrolled in a $1,000 credit limit card with chase bank through Military Star and the interest is around 10-15%. However, is this per MONTH or per YEAR? I would really hope that the interest is not per month as that is completely ridiculous... I wouldn't be surprised if it was, however.

Anyone know? I am new to the credit card thing and being 18, I don't care to make a bad decision (Again!).

Answer 1

It should be per year.  

Usually, when you make a purchase, you will have around 30 days to pay it off with no interest charges.  After that, interest is calculated and charged every month.  Take your balance times the interest rate and then divide it by 12.  That will give you the finance charge for the month which will be added to your balance.

Answer 2

Per year.  To confirm this call their 800 customer service number and ask them.  If it were per month then the annual rate would be 120 to 180 percent and Chase Bank wouldn't charge you that much.  They will try to rip you off but not by that much.

Answer 3

Per year and, for what it's worth, do yourself a favor and pay it off every month.  You can do much better borrowing from some other institution.

Answer 4

No doubt, it is the rate per year