STYLETHREAD -- LET'S TALK SHOP!

ladysi78250 · Dooney & Bourke

Question

laken1 · Hermes

APR is annual percentage rate that they charge you to use your card - for example, 9.9%. Finance charge is the $$ amount that the % rate translates into. For example - you carry a balance & they charge you $35.00 this month to "use" that money. That's why it's important to pay it off every month. Using the same example, they may only give you a minimum payment of $15, so the difference carries on your card too, which compounds over time & they charge you finance charges on that amount too!!!! I hope that makes some sense - just know that if you don't pay off your balance & you make a minimum payment, it takes FOREVER (literally in the vicinity of 10 -12 years) to pay it off in full.

Maybe someone else can explain it in easier terms???

And good for you to get educated before jumping in over your head - that is not a dumb question.

-- Edited by laken1 at 10:03, 2005-05-02

lsubatgirl · Gucci

APR= Annual Percentage Rate I don't know exactly how it plays into CCs. I just know what it stands for.

Finance Charge = % they charge you for being late on your payments. It is the % * the Balance due.

ladysi78250 · Dooney & Bourke

So as long as I pay my payments in full everytime, I won't be charged these to fees, right?

laken1 · Hermes

exactly - if ypu pay the full balance they don't charge you - but if you are one minute later than your due date (literally) then they tack on the finance charge