Do credit cards charge interest?

Yes, credit cards charge interest if the total outstanding balance is not paid in full by the due date. While cards offer an interest-free period of 45 to 50 days on new purchases, any carried-forward balance attracts high interest rates, typically ranging from 30% to 48% per annum. Key points regarding interest:

• Interest is calculated on the daily outstanding balance and is usually compounded monthly.
• Paying only the minimum amount due prevents late fees but does not stop interest from accruing on the remaining balance.
• Cash withdrawals often attract interest immediately from the transaction date.