### Interest rate charges

POSTED BY ON November 17, 2012 12:37 am COMMENTS (13)

in best CC in India top 6 [https://www.jagoinvestor.com/2012/07/best-credit-card-in-india-review.html]Q>in interest rate ,the rate can go 3.5% per month ,,what does this means ? can u explain in simple way ,coz i m just 18

## 13 replies on this article “Interest rate charges”

1. Instead of this all , have you read this article http://jagoinvestor.dev.diginnovators.site/2012/05/myth-of-minimum-balance-in-credit-cards.html . This will clear all your questions .

2. Aishwarya says:

so simply it means that if i have a debt of 1000 ,than i will pay 35 per month to clear it ?,and if i keep on spending than i will also have to pay 3.5 % of it ?

3. Aishwarya says:

What happens if i don’t have any debt ?? on my CC

4. Aishwarya says:

So u all mean ,,if i have not paid my earlier bills or amount for ex. 100
than I will be charged 35 of 100 to pay it each month to clear it ?

1. Aishwarya says:

3.5 of 100

5. sainath says:

In simple words, If you have debt around Rs.10000/- on CC, then you have to pay Rs.350/- p.m as Interest till you clear it.

1. bharat shah says:

what i like to stress for 18 yr aspirant to keep attention for paying whole due a/m in time, and not only minimum required to pay. if you think, you have to pay interest @3.5% p.m. only on that unpaid a/m, you are making mistake. in fact, the subsequent spent a/m till you clear your debts , would also attract the same interest rate , without availing the 0% interest money, what you would avail by paying your whole dues on due date .

1. sainath says:

@bharat
exactly..I just want to keep it simple for her

@aishwarya
adding to my comment, any subsequent amount spent will also get charged @3.5%
means..In above example, if you have not cleared that 10K and keep on spending then the total amount will attract interest @3.5% p.m

1. Aishwarya says:

hahaha LOL ,,i m a male -_-

1. bharat shah says:

rules applicable for both male and female !

6. Gaurav Thakur says:

If your question is about “What is Interest Rate on your Credit card and how is it calculated ” then the following link should help you out ..

http://www.rupeetimes.com/article/credit_cards/credit_card_finance_charges_in_india_a_premier_1329.html

If your question is about “Does interest rate on your credit card change and why” then the answer is Yes and depends on your risk profile. For e.g. say the bank provides you a card with an interest rate of 2.5%, you start revolving, which means start paying the min due only then your interest rate will in all probability will go up to say 3.5%.

Hope this answers your question.

7. bharat shah says:

that is you have to pay Rs.3.5 as interest for the balance a/m ,not paid as on due date, provided you have paid the minimum a/m payable on due date. and that would continue till you pay subsequent due a/m plus interest , and on whole unpaid a/m (includes any buy in subsequent period without any no interest period.)

1. bharat shah says:

please correct Rs.3.5 per Rs.100 every month.

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