A must read for all those who use Credit Card....

You all might be aware about the interest rate your credit card charges ...1.5%, 2.4% or 3.1% .. and in case of default etc 3.4%..... But are you sure how they calculate it?

Lets Start with an Example

Month Bill - 30,000
Minimum Amount Due - 6,000
You have paid - 29,000...... and then next month say you have 40,000 Rs bill... what do you think will be Interest Amount? .....

If your answer is not close to 1500-2000 you are wrong.....

Because since you have not cleared your last payment i.e. you have made a part payment... so you are not a standard asset.... you all transaction of 30,000 will be charged interest at the rate 3.4% (irrespective of your card, as you are Part Payment account) from the date of shopping to the date of bill payment... and as an icing on the top.. all your fresh transactions of 40,000 will also be charged at 3.4% as you are a "Part payment" account...

Strangely this information is available on all credit card forms you fill...further they send you this information again with every bill.... If you don't trust me .. just check the back of your bill