What would be the fiance charge for 1000 dollars on most credit cards for a balance for more than 30

learning about credit cards

What would be the fiance charge for 1000 dollars on most credit cards for a balance for more than 30 days?

Hi. The answer depends on a few things:

-- Your interest rate.

-- Your card company%26#039;s formula for calculating debt.

-- Hmmm. How many more days than 30 days?

The most common formula is the average daily balance. It%26#039;s not too tricky -- it%26#039;s like it sounds. If the balance was $1,000 on day 1, and the annual rate was 10%, it%26#039;s pretty easy:

.10 / 12 x 1000 = $8.33.

But keep in mind if you keep a balance for under 20 or 21 days, depending on the card, you can completely avoid finance charges. That%26#039;s because if you don%26#039;t carry a balance, you have a grace period that lets you use the credit card issuers money for free. And hey, who doesn%26#039;t want to get a loan for free? That%26#039;s what you ought to aim for.

Also keep in mind that if you don%26#039;t pay a bill for more than 30 days, you%26#039;ll be whacked by a late fee -- the national average is about $30 -- and you%26#039;ll risk having your credit score damaged and your interest rate increased by all lenders, not just the one you were late to pay on.

There are many variations, but I%26#039;ve tried to keep it to the basics. Hope I%26#039;ve helped.

What would be the fiance charge for 1000 dollars on most credit cards for a balance for more than 30 days?

depends on your card