i think i understand interest. u spend 1k in the month, only pay back 500, now they add a percentage each month that you have to pay back on top of the 500 u owe yes?
Basically, yes. Some companies also have “leeway months”, so to continue your example say you don’t pay it off entirely for the first 3 months, but just a portion. My credit card has (1) year to the date of purchase before interest accrues, so as long as it’s paid off within the year I can take as long as I like to pay it off.
i think i understand interest. u spend 1k in the month, only pay back 500, now they add a percentage each month that you have to pay back on top of the 500 u owe yes?
Basically, yes. Some companies also have “leeway months”, so to continue your example say you don’t pay it off entirely for the first 3 months, but just a portion. My credit card has (1) year to the date of purchase before interest accrues, so as long as it’s paid off within the year I can take as long as I like to pay it off.
Still, always pay off in full when you can.