You brought a credit card from the company thinking that the lower interest rate would make your life heaven but wait as this may cause more woes proving to be an expensive deal for you. Those attractive looking interest rates or APRs may cost you a lot more.
As per a study it has been found out that the top twenty card providers are calculating interest rates in twelve different ways and therefore a lower APR as per the company may turn out to be costlier as compared to the higher APRs being offered. You may be amazed to know that two different cards with same APR may lead to different levels of interest and you may fail to notice this difference.
Just have a look at some of the features which can affect the cost of credit and were identified by Which?:
Check whether the interest is offered on daily or monthly basis.
Is there any interest free period?
Whether the balance has interest charged on previous month’s statement?
Whether interest is charged till the date of repayment in full or the statement date before the card holder pays back the balance in full?
These are the some of the factors which can help you in finding out the ‘real’ difference.
Via: thisislondon
