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APR & Interest, in plain language
How interest is charged, grace periods and the minimum-payment trap.
What to know
- Pay the full statement balance and purchases owe no interest
- The grace period is your interest-free window
- Carrying a balance accrues interest daily at the APR
- Cash advances skip the grace period and cost more
Watch out: Paying only the minimum keeps the account current but lets interest snowball for years.
Key terms
APRThe yearly cost of carrying a balance.
Grace periodTime to pay before purchase interest applies.
Cash advanceBorrowing cash on a card — high fees, no grace period.
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