Double digit percentages. 15-20%. Sometimes more.
Interest charged to people who do not pay down balances is the primary way the banks behind CCs (not Visa, mc, etc, they just take tiny slices of every transaction) have a business.
Interest charged to people who do not pay down balances is the primary way the banks behind CCs (not Visa, mc, etc, they just take tiny slices of every transaction) have a business.
Meanwhile payday lenders will let you borrow $1000 for 3 months. You have to pay back $500 each month and if you can't pay it off within three months you will have to pay additional fees. That is basically a 500% APR.
There is no need to hate credit card companies. They are doing a perfectly fine job. They obviously have higher rates than regular loans simply because buying something with your credit card doesn't require approval from the company. When you apply for a regular loan it is often tied to a specific purchase that can be repossessed or directly increases your income and therefore ability to repay the loan.
For mine, interest starts accruing from the date of purchase for each purchase, except if you pay your new balance in full in the first statement. Generally the bank calculates it on a daily basis.
You should read your account agreement to figure out how your bank calculates this. Mine is here on page 11: https://www.chase.com/content/feed/public/creditcards/cma/Ch...
It is still not fully clear when does the settlement happen? At the end of each month, with a ~1.5% interest applied on the negative balance?
Now you can see that for reasonably well off people credits cards offer a nice interest-free float. For example you make a large purchase of $1000 on January 15, but your statement gets produced on February 10 with a due date of March 4. Et voilà you can pay for that $1000 on March 4 with zero interest.