What is credit card interest?

Credit card interest is the cost of borrowing money from your credit card issuer. It is typically charged when you do not pay your total statement balance by the due date. In India, this rate is expressed as an Annual Percentage Rate (APR). Key points include:

• Interest is calculated on the outstanding balance and any new transactions if the previous bill was not paid in full.
• Most cards offer an interest-free grace period for new purchases if the prior balance was cleared.
• Interest on cash advances usually starts from the transaction date without a grace period.