Amex credit card interest is calculated using the average daily balance method. This involves adding up the balances for each day in the billing period and dividing that amount by the number of days in the billing period to determine the average daily balance, which interest is then applied to.
Amex will multiply the average daily balance by the daily periodic rate, which is the APR listed on your account divided by the number of days in a year. Next, Amex will multiply that daily periodic rate by the number of days in the billing period. The resulting amount is how much interest Amex will add to your balance for that billing period.
You can easily avoid Amex credit card interest altogether as long as you pay your entire statement balance on time every month. If you do not pay the statement balance in full and carry a balance to the next billing period, interest will compound daily. That means you’re charged interest on both the principal balance and the previous day’s interest.
The American Express interest rate is 13.99% (V) to 24.74% (V), depending on creditworthiness and the specific American Express credit card. Some American Express cards also offer a 0% introductory interest rate, lasting for a specified number of months. The EveryDay, Blue Cash EveryDay, and Cash Magnet cards offer 0% interest for 15 months on purchases. With the Blue Cash Preferred and EveryDay Preferred cards, you can make purchases for 12 months at 0% interest.… read full answer
An American Express card with a 0% interest rate allows you to finance big-ticket purchases for several months without the costly interest charges.
Business owners have four American Express 0% interest rate credit cards at their disposal. The Blue Business Plus Credit Card from American Express is the best of the lot with a 0% interest rate for 12 months on Purchases. The Blue Business Cash card also gives you 0% interest for 12 months on purchases only.
You will need good to excellent credit to qualify for an American Express credit card with a 0% interest rate. That’s a credit score from 700 to 749 (good) and 750+ (excellent). American Express will also review your payment history, employment, income, your level of debt, and other factors. If you’re applying for a business credit card, your personal credit history will play a significant role in the evaluation process.
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