Credit Card Interest Rate?

[liards]

I may seem like a big dumdum to some of you but I'm looking into applying for a Best Buy credit card that has a deferred interest rate of 20-25%. So if I buy a $200 monitor does this mean every month I'll be assessed 20-25% or roughly $40?

[corocoro]

Usually interest rates are annualy - so you'd have roughly 2% per month. If you pay the outstanding balance at the specified date (usually end of month) you go interest free.
Unless, of course, they specify it differently. You should get a few pages with information when you apply, details and payment information is in there.

[liards]

Great, thanks for the response. So if I were to pay it off in 4 months would the entire annual interest still apply or would I just have to pay 4 months worth or the interest?

[corocoro]

You'll get interest every month you have a balance on it. So you'd pay for the four months + compound interest (interest on the accumulated interest).

[liards]

Interest on the interest?.....those bastards....

[Gianna30]

Surely you can get a better rate than that ? 25 seems A LOT.

[brandoncoll]

Call your credit card company and tell them that you're offered a lower rate from the competition and ask nicely them to reduce your rate. I have 4 credit card and it worked for all 4. That 4 for 4!