Revolving interest
循環利息
Revolving interest is what a card issuer charges on the part of the balance you have not repaid in full by the due date, at the purchase APR. On some cards interest runs from the date of the purchase rather than the due date, so you can owe interest even after repaying most of the balance. If the full balance is repaid by the due date each time, purchases usually carry no interest, but the terms differ by issuer.
Example
Suppose the purchase APR is 36% and HK$10,000 stays unpaid for one month.
- Unpaid balance
- HK$10,000
- Purchase APR
- 36%
- Per month
- 3% (36% ÷ 12)
- One month's interest
- about HK$300
HK$10,000 left unpaid for a month costs about HK$300; worked out by the day, the real amount differs a little.
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This page is information, not investment, lending or tax advice.