Check the total cost of your credit card here!
Also, find the estimated time for pay off.
Want to know your credit card cost? Find here!!
Our credit card calculator is one of the easiest methods to find your credit card costs. With it, you can easily estimate the number of months you would take to pay off the balance at a certain monthly repayable amount.
You just need to enter the card balance and card APR and you will get the value of monthly repayable amount.
With the help of range slider, you can vary the monthly repayable amount to get the total repayable amount with interest and number of months required to pay off the debt.
How does credit card interest work? – Things you must know!
Well, credit card interest is a certain percentage of money charged monthly on your credit card balance. The card balance is the amount you owe to the credit card company, which facilitated you with money when you needed it for making purchases.
Normally, credit card companies do not charge any interest for the first 56 days of buying the card. However, if you fail to make payments within this period then the interest are applied. Many of the credit card companies offer ‘0% purchase’ periods which allow you to pay zero interest for a longer period of time.
To avoid paying interest, it is best to pay the full amount by or before the time frame allotted for making payments. If you pay part of the balance, then you will be entitled to pay interest on the balance amount. The quicker you pay the lesser would be the interest.
Failure of making payment will not only cost you higher interest but, also any penalty charges from the credit card company. It will also hamper your credit score and spoil your credit report.
Do not get confused between the rate of interest and the APR (Annual Percentage Rate), which is the percentage you pay not only for borrowing money but also includes other factors like lower credit score, balance transfer fee and other fees that are applicable on your card.
Mind well that the credit card calculator gives estimated results. These may not give the exact figures but can still clear the picture about the time period to pay off the balance as well as total payable amount.
Is it all right to make only minimum repayments?
Minimum repayments as the name suggests is the least payable amount in a month. These are a way to save yourself from bad credit score as it shows your consistency towards making repayments.
However, they are not enough to get you out of the debt. They do help you stretch the payment of your debt to a longer period of time and in turn result in higher interest on the balance.
How to save yourself from high interest?
Pay more every month: By paying higher amount on monthly basis, you will reduce the balance amount and in turn lower down the interest charged on the overall payable amount.
Move balance to a balance transfer card: If you do not want to pay extra interest and cannot manage to payback the total amount by a pre-decided time period then it is wise to shift the balance to a balance transfer card. You need to pay a one-off fee for the transfer but then you can manage to stretch a longer payable period without any interest.
Balance transfer cards explained:
These cards could be your saviour in situations when you cannot pay the balance amount and start accumulating high interest.
The characteristic feature of balance transfer card is that you can transfer the debt of your current credit card on such cards offered by a new provider. You will need to pay a onetime transfer fee equal to 1% to 3% of the transferable amount.
Now, the balance on this new card could be paid over a longer period of time (6 months to 3 years) without any interest. To offer these cards, the providers would want you to have a good credit score.
Can I keep transferring the debt through balance transfer cards?
Well, it is an idea from the devil’s mind and does not work for anybody. You cannot do so as there are multiple things associated with this method of stretching the payable period.
The first drawback is that it is not allowed to transfer the current card balance to the balance transfer card offered by the same supplier. This limits your choices.
You will have to pay the transfer fees every time you move the balance. You cannot afford to spend on transfer fees for a number of times.
Last but not the least, if you fail to pay off the balance within the 0% period of the balance transfer card then you will be switched to the standard interest rates. So, it is advisable to pay the total amount within the 0% period.
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