Credit cards are a type of debt tool, as it allows individuals to borrow funds from financial institutions to make various purchases, with a promise of repayment at a later date. An entire billing cycle is extended to cardholders, during which repayment can be made without any extra charges.

Any bills due after the completion of this period attract interest rates. Understanding what is credit card interest rate and how it is calculated is crucial to determine the total interest burden on outstanding dues if any.

Credit cards attract interests under the annual percentage rate (APR), which primarily comprises two parts –

1. Daily periodic rate, which reflects the interest rates levied on total unpaid bills every day. Multiplying this figure by 365 shows the annual percentage rate of a credit card.
2. Average daily balance is also another parameter of APR, which shows the average value of transaction processed through a credit card daily.

Individuals opting for a RBL Credit Card can view the APR rate directly from their credit card statement generated at the end of each billing cycle, based on which monthly interests are accumulated on any outstanding payment. Knowing such values help individuals determine their interest liability on any missed bills, thereby facilitating adequate financial planning to meet such obligations.

They also provide pre-approved offers on their official portal on loans, which make availing them quick and hassle-free. Pre-approved offers are extended on numerous loan products such as home loans, personal loans, business loans, loans against property, credit cards, etc. You can check your pre-approved offer by providing only your name and phone number.

Nonetheless, cardholders should try to repay all outstanding dues on time before the completion of the billing cycle to avoid such APR imposition on their bill. Furthermore, timely repayments are known to establish cardholders as creditworthy individuals, which in turn, might increase the reward points offered on each transaction.