Question:

Just got a credit card help?

by  |  earlier

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ok im 18. i have a 10. something % on $1,000 credit card. and 6 months without a payment. how much would it cost for every 100 i spend on it?

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  1. Just because you don't have to make a payment for the first six months doesn't mean you shouldn't.  You may not be paying but you are still building interest on your balance which means you are paying more in the long run.  I would pay as much as you reasonably can.


  2. It is going to cost you waaayyyyy too much if you spend on this card and not make a payment for 6 months! EEEK! I would bet that you have a 0% interest rate for 6 months, that sounds more logical.

    Just take roughly 10% of all your purchases and that is close enough to your finance charge to determine if what you want to buy is worth financing!

    For example, let's say you have a 10% annual interest rate or APR. Your card balance is $720.00. Your interest rate is going to cost you $72 to finance the $720 purchase for the entire year! This is not completely accurate since credit cards have a monthly periodic rate, but you get the idea.

    And it's a good idea to start thinking like this with a credit card because you are not increasing your spending power with one! Get in the habit of figuring out your finance charges before buyiong and then you can decide if your purchase is really worth it!

    Maybe you can buy your item and pay it off in 2 months instead which costs you much less in finance charges!

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