What Is APR On Credit Card?
A credit card interest rate or the finance charge is a fee charged by your credit card issuer for charges made on your card. It varies between credit card issuers and may also vary between cards offered by one issuer. Unlike other forms of debt interest, credit card interest rates are fixed for the card and do not vary based on credit score history. The user needs to know about the relevant interest rate to ensure maximum savings.
When is the credit card interest rate charged?
The credit card monthly interest rate is charged under the following circumstances-
- Why do you pay the minimum amount due on the card?
- You buy goods on EMI
How is the credit card loan interest rate calculated?
what is apr on credit card – A credit card interest rate calculator can be used to find out the interest you will pay on the balance due on the card. The formula used by the credit card interest rate calculator is given below-
Monthly Credit Card Interest = [(Total Number of Days x Transaction Amount x Monthly Credit Card Interest Rate x 12 Months)] / 365 Days
Even if you don’t have a credit card monthly interest calculator, you can calculate the monthly interest charge on your credit card using the same formula.
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Bank-wise Credit Card Interest Rate
Interest fees on credit cards vary from one bank to another. To give you an idea, here is a list of credit card interest rates charged by some popular banks in the country:
SBI Credit Card – 3.35% per month/ 40.2% per annum
Citibank Credit Card – 3.50% per month/ 42.00% per annum
Axis Bank Credit Card – 3.4% per month/ 49.36% per annum
RBL Bank Credit Card – 3.99% per month/ 47.88% per annum
HDFC Bank Credit Card Intermile HDFC Bank Diners Club/ Diners Black/ Infinia – 1.99% p.m./ 23.88% p.a.
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Other Credit Cards- 3.6% per month/ 43.2% per annum
ICICI Bank Credit Card Intermiles ICICI Bank Credit Card / MakeMyTrip ICICI Bank Credit Card / ICICI Bank HPCL Super Saver Credit Card – 3.50% p.m./ 42% p.a.
Manchester United Credit Card by ICICI Bank – 3.67% p.m./ 44% p.a
ICICI Bank Instant Platinum Credit Card/ ICICI Bank Tatkal
Gold Credit Card Fixed Deposit Instant Credit Card – 2.49% per month/ 29.88% per annum
Other Credit Cards- 3.4% p.m./ 49.36% p.a
Top Credit Card Interest Rates
Below are the credit card interest rates for some of the top cards from popular banks:
- Axis Bank My Zone Credit Card – 3.4% per month/ 49.36% per annum
- IndianOil Citibank Credit Card – 3.75% per month i.e. 45% per annum
- SBI Elite Credit Card – 3.5% per month/ 42% per annum
- ICICI Bank Coral Credit Card 3.4% p.m./ 49.36% p.a
- HDFC Bank Regalia Credit Card 3.6% per month i.e. 43.2% per annum
- RBL Bank Platinum Plus Supercard – 3.99% per month/ 47.88% per annum
- Bank of Baroda Eterna Credit Card* 3.5% p.m./ 42% p.a
- HSBC Bank Platinum Credit Card* 3.3% p.m./ 39.60% p.a
- Kotak League Platinum Credit Card* 3.5% p.m./ 42% p.a
*Disclaimer: Finserv is not a market partner. Offer will be through partner banks/NBFCs only.
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What is the Credit card interest-free period?
what is apr on credit card – The credit card interest-free grace period is the period between the date of transaction and the next date of payment when no interest is charged on the card. Since this period varies from bank to bank, you should keep this in mind while applying for a credit card. It is also important to note here that the credit card interest-free period is applicable only on new purchases, but does not cover cash advances or balance transfers. If the previous month’s arrears are not paid in full, the grace period will also be canceled. In this case, you will be charged interest on the balance amount as well as on new purchases.
Some important things to keep in mind about credit card interest rates
Here are some things you should know about credit card interest rates:
- If you pay the full amount due before the due date, you can avail of the interest-free period of the credit card.
- It is important to remember the payment due date given on your credit card statement, as payments made after that date will incur a penalty.
- To stop paying interest on a credit card, make sure you pay off your balance within the credit card’s interest-free period.
- Annual Percentage Rate (APR) is charged as interest on credit card balances.
- You can enjoy the lowest interest rate on your credit card balance by availing of the EMI scheme.