How do I calculate my credit card APR?
Calculating the APR of your credit card is a relatively simple process. In Alaska, the Credit Card Law requires lenders to include the APR of a given credit card in the agreement, making it easy to find the rate. To calculate your credit card APR, first, find the rate stated in the agreement. This will be a percentage, for example, 17%. Next, take the number of days in the billing cycle and divide it by 365, an average number of days in a year. For example, if you have a 30-day billing cycle, you would divide 30 by 365 to get .0821917808. Finally, multiply the rate stated in the agreement with the number of days in the billing cycle divided by 365 to get the actual APR. Using the example above, you would take .0821917808 and multiply it by 17%: 0.0014073106. The result of this calculation is the APR of your credit card in Alaska. In this example, the APR of the credit card is 0.14% or 14 basis points.
Related FAQs
How do I calculate my credit card APR?What can I do to protect myself from credit card fraud?
What is a chargeback fee?
What is a balance transfer fee?
What is a balance transfer fee?
What happens if I default on a credit card?
What is a grace period on a credit card?
What is a penalty interest rate on a credit card?
How do I dispute unauthorized charges on my credit card?
What is a credit card processor?
Related Blog Posts
The Basics of Credit Card Law: What You Need to Know - July 31, 2023The Pros and Cons of Credit Card Use - August 7, 2023
What Is the CARD Act and How Does It Impact You? - August 14, 2023
5 Tips for Understanding Credit Card Law - August 21, 2023
Understanding the FDCPA and Its Impact on Credit Card Law - August 28, 2023