What is a “daily periodic rate” on a credit card?
- Listed: August 7, 2022 7:20 am
- Expires: 98939 days, 5 hours
Description
What is a “daily periodic rate” on a credit card?
Some card issuers calculate interest on the account using a daily periodic interest rate. A daily periodic interest rate generally is used to calculate interest by multiplying the rate by the amount owed at the end of each day.
This interest amount is then added to the previous day’s balance, which means that interest is compounding on a daily basis.
However, the interest rate for a credit card is usually stated as an annual rate (the annual percentage rate or APR). The daily periodic interest rate generally can be calculated by dividing the annual percentage rate, or APR, by either 360 or 365, depending on the card issuer.
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Listing ID: 82062ef67a8f20bd
- Listed by: Editor
- Member Since: July 24, 2018
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