Interest will only be calculated when you carry a balance beyond your due date. If that’s the case, and you’re thus carrying a balance from month to month, finance charges will be assessed on a monthly basis yet accrue daily. In other words, one day’s interest becomes part of the balance incurring interest the next day.
This can be tough to visualize at first, but we have a great article on the topic that should help clear things up: http://wallethub.com/edu/how-credit-card-interest-works/25789/ . Hope this helps.
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