Personal Finance
Tuesday, 7/21, 10:18 AM
How credit card interest actually works, and the grace period that makes it free
- Credit card interest is quoted as an annual rate but usually charged daily, on your average daily balance.
- The single most valuable rule is the grace period: pay the statement balance in full and, on new purchases, you generally owe no interest at all.
- Carry a balance and that protection disappears.


