Freeloaders all the way!! Although that doesn't seem like the best name for people who pay on time every time. There has to be a better name for responsible people right ?! This channel rocks!🤘🏻
question: I have heard other advice suggesting to not be labeled as a freeloader. Instead, the strategy is to payoff all of your debt save $1 or so so that you pay MINIMAL interest, but is that more beneficial (in the long run) than paying in full?
You DON'T HAVE to pay your balance in FULL in order to avoid paying interest. Pay the STATEMENT BALANCE and you won't get charged any interest. It's never a bad thing to pay in full, however you don't necessarily have to, to avoid interest charges.
Most of us don't even think about retirement until we are 40. lol We are just college students trying to survive each day working minimum wage jobs. I can barely afford food.
You so wonderful *@Darkblack19* on *Telegram* I can’t believe there still real vendor after all scam, you’re the only one I’ll be trading with, and you make it real to me by sending working cc load with high balance of 10k you’re the best bet 💯
Omg you're AMAZING! I just received my first credit card im currently trying to build my credit Im a junior in college, I've never had a credit card. I've always heard the horror stories of my friends with their credit cards so I was so scared to get one at first 😭. I was really confused on how this whole thing worked but you have helped me so much! Thank you!!! 😊
So if you get a high APR at first because you have no credit but you make sure to pay on time will this lower your APR? or would that only help your credit score?
You so wonderful *@Darkblack19* on *Telegram* I can’t believe there still real vendor after all scam, you’re the only one I’ll be trading with, and you make it real to me by sending working cc load with high balance of 10k you’re the best bet 💯
For those wondering, I believe when she says pay your balance in full, she's referring to your STATEMENT BALANCE. Obviously, paying the whole total balance would benefit you, but as long as you pay your STATEMENT BALANCE in full each billing cycle, you won't carry over any debt from that month's balance, thus you won't accrue any interest- that applies to ALL CREDIT CARDS. Learn how to work your credit, don't let it work you!
@@olivervasquez1576 Your statement balance is the amount due that you spent last month. Your full balance is the total amount you've spent. For example: Let's say you set your due date for the 20th of each month. You spent $200 in January. Your statement and full balance are both $200. Let's say within that 20 days in February you spent $150. Your full balance is now $350. Your statement balance is still $200. Once you pay your statement balance, your full balance is $150.
Simple explanation, no waisted time, none of the usual complex annoying filler material that you tubers usual put in. You are of a divine origin missbehelpfull!
Thank you so much for this video! I was having a hard time understanding APR and now I understand it perfectly! On the bright side I won’t have to worry about it because I will be paying everything off each month. Thanks again :)
I have been asking my friends and looking online about what APR really means and you out of everyone explained it right to the point. Gave it a like. Thank you so much.
Hello and Thank you for the good advice. Keep em comin!! And to all my peoples just a friendly reminder that if you like a video help the RUclipsr out by watching the ADs because they only get paid if we watch the Ads. Think of it as your way of paying it forward. I try to watch as many as possible for the channels I appreciate. Thanks yall and have a great night.
While I understood the concept of paying interest on borrowed money, I never understood how that interest was calculated. Thank you. Schools should teach personal finance.
Really appreciate this video! I’m a college student and trying to improve my credit score so I can get a place soon and this really helps! No one really taught me this stuff growing up!
You so wonderful *@Darkblack19* on *Telegram* I can’t believe there still real vendor after all scam, you’re the only one I’ll be trading with, and you make it real to me by sending working cc load with high balance of 10k you’re the best bet 💯
MissBeHelpful I just got My first credit card and this video is so helpful. My APR is high but I don't have established credit yet. I'm working on building it.
You so wonderful *@Darkblack19* on *Telegram* I can’t believe there still real vendor after all scam, you’re the only one I’ll be trading with, and you make it real to me by sending working cc load with high balance of 10k you’re the best bet 💯
I guess the credit card companies have a different meaning for freeloader then everybody else, because I never carry a balance, and my credit card companies love me. Credit utilization rate is 6%, and Pat on the backs just keep coming. Just got a great credit increase to my limit and to my score.
It's good to have a low APR just in case mines vary from 15% to 25% but luckily i pay no attention to it since i pay off my CC's in full every month. If your really interested in having a low APR CC then i highly suggest looking at a Credit Union issued credit card they give the lowest rates easily. Do you have any plans to make a credit union vs banks video any time soon? I think it'd be a huge help for the viewers such as no maintenance fee's, low auto and home rates, non-profit etc.. Just an idea :)
Ah thank you! Yeah right now with such high interest rates set by the Fed (just dropped .5% this week) we’ll keep seeing higher APR but slowly it will go back down as the Fed keeps lowering rates!
Ty for clearing my confusion about APR. Like the last year APR was the only thing I was confused about on how the credit cards worked. I thought APR was like annual fee that you have to pay annually, so 4-5% of whatever you spent that year. Now I know that APR & Interest rates are the same thing in credit cards. If you pay off your debt monthly than No APR for you
is there a minimum amount to spend on credit cards? what if i just make a purchase of 100 and pay it on time for that month? will i still be charged with interest and do i have to use the card every month?
allertseanayl well it depends on the card. There are beginner credit cards that don't have any annual fees and don't obligate you to use the card every month. Then there are highly prestigious cards that have annual fees around $550 and also don't obligate you to use the card, but if you use this type of card there's a minimum you need to use each month ONLY to collect reward points. And to answer your question about making purchases, if you use $100 and pay it off in full and on time for that month then you don't have to worry about being charge the APR/interest.
what if they tell us to choose a price for something and give us the apr and the years 0, 1, 2, 3, 4, 5, 6, then ask How much interest do you owe after six years?
I watched another video before yours, also talking about the APR, truth is.. I finished the video and still had lots “????” Around me. U did such a great job explaining this! Thank you!
Question; so if you pay your balance off before the due date by a few days, are you allowed to use the card again and it still be paid off in full if you use it before the due date?
If you pay it off 3 days before the due date you will owe zero. Then you spend $10 the next day and that money will be part of the next billing cycle which you will pay the following due date. Check out this video for more on that: ruclips.net/video/_djpGzJ3uks/видео.html
Very helpful video! My only question and the part I’m confused on is the part where people keep talking about the percentages they use/ charge for everyday use? I don’t even know if I explained that right but you literally don’t have to worry about any interest or anything if you pay your balance in full every month. Is that correct? 😳😅
Wait your only charged for the amount spent in the month? What about if you don’t pay the full balance and keep it for the next month but you don’t buy anything for the next month. Then are you charged interest?
I Was Hoping That You Would Give Us A Sample Referencing Any Number And Any APR So We The Newbies Will Get A Better Understanding Of APR ! Hopefully Soon Thanks.
You so wonderful *@Darkblack19* on *Telegram* I can’t believe there still real vendor after all scam, you’re the only one I’ll be trading with, and you make it real to me by sending working cc load with high balance of 10k you’re the best bet 💯
so if I owed £250 on average every day for 30 days at 15% APR I would owe £1,225 every month? Seems excessive, I think I may be misunderstanding this. Could you do a practical example with your formula? Thanks
PutOnTheGlasses while the formula she put is correct, it's only part of entire calculation. She failed to elaborate the formula for the average daily balance. To answer your question, the average daily balance is the balance due times the number of days that THAT balance is due divided by the number of days in the billing cycle. Your example being (£250x30/30) x 0.00041095890411 x 30 = £3.08 Remember, when you want to calculate your daily periodic rate, you take the APR which is 15% divide it by 100 AND THEN divide it by 365 to get the same answer. Another thing she failed to elaborate as well.
So I want buy a laptop and I wanted to apply for the blue cash American Express credit card that offers 0 apr for 12 months can I just make one purchase for let's say the 1000 dollars and I would have 12 months to pay off the 1000 dollars without any extra fees?
Emily Guzman yes and no. No because they will not charge any interest for those 12 months as respected. And then yes because like any credit card company they will expect a minimum payment each month. You buy a $1000 laptop and decide to pay it off in 1 year, they will expect a minimum of $30-$45 (for example) each month. If you don't pay the minimum each month then they can hit you with a late fee that can vary between $25-$45 for every month you don't pay what the minimum states on your statement and these late fees can be added on top of the principal if they're not accrued aside from the principal. Not only that but also if you don't pay the minimum each month they report it to the credit bureau which can potentially harm your credit score.
Mazemaster18 yes they will still be charging you interest because you only paid off the minimum amount for that month and not the full balance due for that month. You pay off the entire balance due from that certain month before or on the due date then they will not charge you any interest.
So let me get this right. If I have an APR of 14.25%... I would divide that by 365 day in a year. That would give me .039 Approx 4 cents per day. Then I would x that by amount owed on Credit Card(lets say $2k) That would be .78 a day interest? Then x that number by the number of days in the billing period.... Which would be .78 x 30 that = $23.40 a month in interest on a $2k balance. Did I do that right? BTW thanks for explaining this...... That would indeed make the bank some money. I've been a freeloader from the get go. However its really easy to buy that 2,000 dollar item and want to make payments. That is a NO NO. However if you open a new credit card with a zero APR for 15 months. You can buy something on payments without ever paying a penny. :)
I took out a one time loan of $1,100 cause I needed to purchase a car very quickly. I’m supposed to pay every 2 weeks for 20 payments in total but my APR is 587.08% How the f*ck is it so high...? The loan is only $1,100 but if I follow the payment plan I will end up paying them $5,460. Is this even legal???? Why is this even legal?? I would have never taken the loan if I knew I was going to have to pay that much.
Clarifying question. You mentioned they break APR down into daily interest so to speak. Does that mean that even if you pay your bill in full and on time, you'll still get charged some sort of "fee" based on this daily APR?
Michael Waddell if you pay your CC balance off completely, before or on the due date every month, you don't have to worry about being charged the APR/interest or any fees. The only fee you would have to pay on a CC is an annual fee which is standard on a premium CC.
credit cards company's can call us freeloaders all they want. for getting rid of travelers checks and being difficult I call credit card banks and fincinacial company's garbage.
Basically: Paying on time = No APR fees and no interests? So, if you get a Credit card for 12 months 0% APR you have 12 months to pay your credit? But you will have to pay interest fees? And what is a Balance transfer fee?
If you get 12 months 0% APR, you just have to pay the minimum and they wont charge you interest for those 12 months but if you still owe money at the end of those 12 months, they will start charging you interest Balance transfer fees are what they charge you for moving money from one credit card to another, usually 3-5% of the money that you move with a minimum of a $5 fee
So what if I want to get a credit card to build my credit in order to make 1 purchase for repairs on my vehicle? Used that fund and make monthly payments?
Great stuff - as always. I like "freeloaders" (except it seems a bit derogatory!) and "revolvers" but use "convenience user" and "borrower" in my classes.
Thanks, but it would have been good to give some examples. My cc apr is 29.99% , and i rack up $600 off purchases for the month. For simplicity... Lets say that 600 is also my daily average. So my daily apr will be 29.99/365 = 8.22% So my interest for the month should be 8.22% of $600 = $49.43 Please confirm my math's correct
About to setup Second credit card from a 500 lim to a 6000 as have now got a new job making 1,200 monthly. I’m looking to make a purchase of 4500.. 0% for 12 months and 29%apr I’m about to do it now.. just checking that’s all fair correct ?
should I sign up for a Capital One Quick silver credit card if it says 0% intro APR for 9 months with a 28.99% variable APR after that 1.5% cash back on every purchase, every day $0 annual fee?
My credit score is 636. I’m trying to build it up to 700 and over.. Don’t owe anyone anymore. But I’m trying to build up my credit score. Looking to get another credit card. Not to over spend,but to use it for emergencies. I’m hoping that could help build up my score by paying on time..
It means the interest you pay for those 15 is zero BUT every month you still get a bill that you must pay to keep your credit in good standing. If you pay nothing towards the card that whole time then you’ll be charged late fees and get a bunch of late payments on your record so make sure to pay every bill. Also, pay close attention to the end of the 15 months because if that date comes and you haven’t paid then they will hit you with big interest fees!!!
Hi! Thanks for the great overview of APR. I think it would've helpful to actually input some numbers to show how to calculate. Do you have a video of that?
im still confuse how can i become a free loader. If the allowed me to have 300 to spend does that mean i owned them 300 which mean each month i have to pay them apr of 300 even if i dont use the 300? How can i pay that off.
Tuyet Tran it's really not how much they allow you to "have" but more how much they allow you to "use". For example, if they give you a card that allows you to use up to $300 and you use $0 of that $300 credit limit, then you won't owe them any money. And to become a free loader basically is whatever amount of credit you use within the $300 credit limit means you pay off the credit you used completely and on time to avoid being charged the APR/interest.
No impact if you pay after the statement closing date and before the due date (that's called the grace period) only impact happens if you pay it down before the statement closing date. Thanks for watching and commenting!
4 years later and still the best video!!! I'm 24 and just now understanding this in addition to getting my first credit card 🖤🖤 thankyou so much for the video !!
WHY DO WE NOT LEARN THIS IN HIGH SCHOOL??? I'M 23 and just starting to learn about money and cards.
Same dude
Vminhope Yeah! everyone wants to know about credit apr's while there's a fight in the locker rooms😂
I'll be 28 in 2 weeks and I'm just learning this! High school needs to teach this stuff
22 and same! They should have taught this in economics..
I could not agree more!!!!!
This was like, APR for Dummies: straight to the point and extremely simplified. Thank you!
No cause fr!😂 exactly the video I needed
This was straight up the easiest most understandable video on this that I have ever watched; Thanks!!
Ain’t gonna give testimony, but I’mma tell you to work with *@Darkjacob* on *telegram* if you want a real vendor 💯
Lol no. This is not the most understandable video. This explanation is vague without any examples.
Freeloaders all the way!! Although that doesn't seem like the best name for people who pay on time every time. There has to be a better name for responsible people right ?! This channel rocks!🤘🏻
Agreed! Haha! Thanks for watching and commenting!
Wonder why they call it freeloading. I thought the credit card company get 3% of the purchase from the store you buy from.
question: I have heard other advice suggesting to not be labeled as a freeloader. Instead, the strategy is to payoff all of your debt save $1 or so so that you pay MINIMAL interest, but is that more beneficial (in the long run) than paying in full?
Transactors?
Gohan335i7 Responsible Contributors! 🤣
You DON'T HAVE to pay your balance in FULL in order to avoid paying interest. Pay the STATEMENT BALANCE and you won't get charged any interest. It's never a bad thing to pay in full, however you don't necessarily have to, to avoid interest charges.
Really good advice, been asking around but nobody gave me a good answer. Thanks
me tryna learn how to adult :
Good explanation, but it could use an example to drive the theory home
Agreed. I was waiting for her to use example numbers to plug into the formula, but still a good video nonetheless.
My thoughts exactly
@@9thwardneezy861 Agreed, this guy does a great job explaining in details ruclips.net/video/PFtUWI57xQs/видео.html
Yep... found it here ruclips.net/video/PFtUWI57xQs/видео.html
@@carmenwilliamson195 Nice! Thank you!
Thanks to you I'm saving for retirement and building credit at 20 years old, I love your channel!!
YASSS! Go off, Genesis! You are my hero! Haha! I wish I was like you at 20!
Most of us don't even think about retirement until we are 40. lol We are just college students trying to survive each day working minimum wage jobs. I can barely afford food.
Ain’t gonna give testimony, but I’mma tell you to work with *@Darkjacob* on *telegram* if you want a real vendor 💯
You so wonderful *@Darkblack19* on *Telegram* I can’t believe there still real vendor after all scam, you’re the only one I’ll be trading with, and you make it real to me by sending working cc load with high balance of 10k you’re the best bet 💯
She reminds me of Amy Santiago. Even the voice. She is very beautiful
Headass
Oh my god, this is the real-life version of Amy Santiago (Brooklyn Nine-Nine), if you know you know.
True
Love your channel! I'm in high school and nobody teaches me this stuff, haha :)
Seriously Jazlyn! You're lucky for starting to learn all of this so early!!
Ain’t gonna give testimony, but I’mma tell you to work with *@Darkjacob* on *telegram* if you want a real vendor 💯
Omg you're AMAZING! I just received my first credit card im currently trying to build my credit Im a junior in college, I've never had a credit card. I've always heard the horror stories of my friends with their credit cards so I was so scared to get one at first 😭. I was really confused on how this whole thing worked but you have helped me so much! Thank you!!! 😊
Congrats! Glad to hear that! Thanks for watching and commenting!
So if you get a high APR at first because you have no credit but you make sure to pay on time will this lower your APR? or would that only help your credit score?
Good question - only helps your credit score. But you can call your credit provider and ask them to lower your APR!
most likely the credit card provider will give you a lower apr overtime or only for a limited time.
@@missbehelpful. So I should have no worries if I'm never late right
Buy your credit card with high balance from *@Darkblack19* *telegram* dumps with pin that comes with MSR i got mine from him 💯
You so wonderful *@Darkblack19* on *Telegram* I can’t believe there still real vendor after all scam, you’re the only one I’ll be trading with, and you make it real to me by sending working cc load with high balance of 10k you’re the best bet 💯
For those wondering, I believe when she says pay your balance in full, she's referring to your STATEMENT BALANCE. Obviously, paying the whole total balance would benefit you, but as long as you pay your STATEMENT BALANCE in full each billing cycle, you won't carry over any debt from that month's balance, thus you won't accrue any interest- that applies to ALL CREDIT CARDS. Learn how to work your credit, don't let it work you!
So.. what's the difference between the full balance and the statement balance?
@@olivervasquez1576 Your statement balance is the amount due that you spent last month. Your full balance is the total amount you've spent.
For example: Let's say you set your due date for the 20th of each month. You spent $200 in January. Your statement and full balance are both $200. Let's say within that 20 days in February you spent $150. Your full balance is now $350. Your statement balance is still $200. Once you pay your statement balance, your full balance is $150.
Simple explanation, no waisted time, none of the usual complex annoying filler material that you tubers usual put in. You are of a divine origin missbehelpfull!
Thank you so much for this video! I was having a hard time understanding APR and now I understand it perfectly! On the bright side I won’t have to worry about it because I will be paying everything off each month. Thanks again :)
I have been asking my friends and looking online about what APR really means and you out of everyone explained it right to the point. Gave it a like. Thank you so much.
Hello and Thank you for the good advice. Keep em comin!! And to all my peoples just a friendly reminder that if you like a video help the RUclipsr out by watching the ADs because they only get paid if we watch the Ads. Think of it as your way of paying it forward. I try to watch as many as possible for the channels I appreciate. Thanks yall and have a great night.
While I understood the concept of paying interest on borrowed money, I never understood how that interest was calculated. Thank you. Schools should teach personal finance.
This was so good (as always) and made it much easier to understand the daily cost of credit
Really appreciate this video! I’m a college student and trying to improve my credit score so I can get a place soon and this really helps! No one really taught me this stuff growing up!
I always have to watch your videos twice. Once for the hotness, once for the infos.
ahaha right !!!!
Coogi King GET THIS MAN SOME PUSSY
It’s not the compliment you think it is 😐
You so wonderful *@Darkblack19* on *Telegram* I can’t believe there still real vendor after all scam, you’re the only one I’ll be trading with, and you make it real to me by sending working cc load with high balance of 10k you’re the best bet 💯
Always great information love this channel
Thanks so much! I appreciate this!
MissBeHelpful I just got My first credit card and this video is so helpful. My APR is high but I don't have established credit yet. I'm working on building it.
@@missbehelpful
Smart & Beautiful!
Ain’t gonna give testimony, but I’mma tell you to work with *@Darkjacob* on *telegram* if you want a real vendor 💯
You so wonderful *@Darkblack19* on *Telegram* I can’t believe there still real vendor after all scam, you’re the only one I’ll be trading with, and you make it real to me by sending working cc load with high balance of 10k you’re the best bet 💯
I guess the credit card companies have a different meaning for freeloader then everybody else, because I never carry a balance, and my credit card companies love me. Credit utilization rate is 6%, and Pat on the backs just keep coming. Just got a great credit increase to my limit and to my score.
It's good to have a low APR just in case mines vary from 15% to 25% but luckily i pay no attention to it since i pay off my CC's in full every month. If your really interested in having a low APR CC then i highly suggest looking at a Credit Union issued credit card they give the lowest rates easily.
Do you have any plans to make a credit union vs banks video any time soon? I think it'd be a huge help for the viewers such as no maintenance fee's, low auto and home rates, non-profit etc.. Just an idea :)
If you have one near you and it is convenient def do that!
So simplified and SUPER helpful thank you
You're so welcome!
Been rocking with you for a while, had to subscribe. Thank you
Straight to the point! Thank you!
that first 34 seconds was all i needed thanks
This video would be🔥 with an example
Anyway good job
This video is 7 yrs old (still helpful) and i wish 15% was standard! All I’m seeing is about 25%+
Ah thank you! Yeah right now with such high interest rates set by the Fed (just dropped .5% this week) we’ll keep seeing higher APR but slowly it will go back down as the Fed keeps lowering rates!
Ty for clearing my confusion about APR. Like the last year APR was the only thing I was confused about on how the credit cards worked. I thought APR was like annual fee that you have to pay annually, so 4-5% of whatever you spent that year. Now I know that APR & Interest rates are the same thing in credit cards. If you pay off your debt monthly than No APR for you
Thank you SO MUCH for answering the question in my head inside of 30 seconds!! SUBSCRIBED with a THUMBS UP!!! You Rock MissBeHelpful!!!
is there a minimum amount to spend on credit cards? what if i just make a purchase of 100 and pay it on time for that month? will i still be charged with interest and do i have to use the card every month?
allertseanayl well it depends on the card. There are beginner credit cards that don't have any annual fees and don't obligate you to use the card every month. Then there are highly prestigious cards that have annual fees around $550 and also don't obligate you to use the card, but if you use this type of card there's a minimum you need to use each month ONLY to collect reward points.
And to answer your question about making purchases, if you use $100 and pay it off in full and on time for that month then you don't have to worry about being charge the APR/interest.
what if they tell us to choose a price for something and give us the apr and the years 0, 1, 2, 3, 4, 5, 6, then ask How much interest do you owe after six years?
please someone reply asap
I watched another video before yours, also talking about the APR, truth is.. I finished the video and still had lots “????” Around me. U did such a great job explaining this! Thank you!
Question; so if you pay your balance off before the due date by a few days, are you allowed to use the card again and it still be paid off in full if you use it before the due date?
If you pay it off 3 days before the due date you will owe zero. Then you spend $10 the next day and that money will be part of the next billing cycle which you will pay the following due date. Check out this video for more on that: ruclips.net/video/_djpGzJ3uks/видео.html
Very helpful video! My only question and the part I’m confused on is the part where people keep talking about the percentages they use/ charge for everyday use? I don’t even know if I explained that right but you literally don’t have to worry about any interest or anything if you pay your balance in full every month. Is that correct? 😳😅
Wait your only charged for the amount spent in the month? What about if you don’t pay the full balance and keep it for the next month but you don’t buy anything for the next month. Then are you charged interest?
Schools don't teach this so we are here!
Ohhhh mmyyyyy goshhhh thank you!!!!! All I needed to know was in the first 46 seconds lol thanks again!!!
I Was Hoping That You Would Give Us A Sample Referencing Any Number And Any APR So We The Newbies Will Get A Better Understanding Of APR ! Hopefully Soon Thanks.
Sure maybe I'll make that another video soon! Thanks for watching and commenting!
I was hoping also
@@missbehelpful what if you have 24.7% apr of £1000 on credit card. Pls can you do calculation to know interest rates? Thanks
You so wonderful *@Darkblack19* on *Telegram* I can’t believe there still real vendor after all scam, you’re the only one I’ll be trading with, and you make it real to me by sending working cc load with high balance of 10k you’re the best bet 💯
Thank you so much baby I wish I could meet you and have you teaching my valuable stuff
Ain’t gonna give testimony, but I’mma tell you to work with *@Darkjacob* on *telegram* if you want a real vendor 💯
so if I owed £250 on average every day for 30 days at 15% APR I would owe £1,225 every month? Seems excessive, I think I may be misunderstanding this. Could you do a practical example with your formula? Thanks
PutOnTheGlasses while the formula she put is correct, it's only part of entire calculation. She failed to elaborate the formula for the average daily balance. To answer your question, the average daily balance is the balance due times the number of days that THAT balance is due divided by the number of days in the billing cycle. Your example being (£250x30/30) x 0.00041095890411 x 30 = £3.08
Remember, when you want to calculate your daily periodic rate, you take the APR which is 15% divide it by 100 AND THEN divide it by 365 to get the same answer. Another thing she failed to elaborate as well.
So I want buy a laptop and I wanted to apply for the blue cash American Express credit card that offers 0 apr for 12 months can I just make one purchase for let's say the 1000 dollars and I would have 12 months to pay off the 1000 dollars without any extra fees?
Emily Guzman yes and no. No because they will not charge any interest for those 12 months as respected. And then yes because like any credit card company they will expect a minimum payment each month. You buy a $1000 laptop and decide to pay it off in 1 year, they will expect a minimum of $30-$45 (for example) each month. If you don't pay the minimum each month then they can hit you with a late fee that can vary between $25-$45 for every month you don't pay what the minimum states on your statement and these late fees can be added on top of the principal if they're not accrued aside from the principal. Not only that but also if you don't pay the minimum each month they report it to the credit bureau which can potentially harm your credit score.
I shall be a free loader i had to watch the video twice tho cause she cute asf first time didnt listen second time i had to focus up so i could learn😂
Hello. What if I paid more than the minimum payment of the card but still I got remanning balance to pay on my card will I be charged for APR?
Mazemaster18 yes they will still be charging you interest because you only paid off the minimum amount for that month and not the full balance due for that month. You pay off the entire balance due from that certain month before or on the due date then they will not charge you any interest.
You should do a video on "Pre Approved" credit cards and how they work.
I will soon! Thanks!!
So let me get this right. If I have an APR of 14.25%... I would divide that by 365 day in a year. That would give me .039 Approx 4 cents per day. Then I would x that by amount owed on Credit Card(lets say $2k) That would be .78 a day interest? Then x that number by the number of days in the billing period.... Which would be .78 x 30 that = $23.40 a month in interest on a $2k balance. Did I do that right? BTW thanks for explaining this...... That would indeed make the bank some money. I've been a freeloader from the get go. However its really easy to buy that 2,000 dollar item and want to make payments. That is a NO NO. However if you open a new credit card with a zero APR for 15 months. You can buy something on payments without ever paying a penny. :)
I took out a one time loan of $1,100 cause I needed to purchase a car very quickly.
I’m supposed to pay every 2 weeks for 20 payments in total but my APR is 587.08%
How the f*ck is it so high...? The loan is only $1,100 but if I follow the payment plan I will end up paying them $5,460. Is this even legal???? Why is this even legal?? I would have never taken the loan if I knew I was going to have to pay that much.
Thank you! I just turned 18 and finally someone was able to answer this question clearly enough for me to understand! Thank youuuuu!!!!
Clarifying question. You mentioned they break APR down into daily interest so to speak. Does that mean that even if you pay your bill in full and on time, you'll still get charged some sort of "fee" based on this daily APR?
Michael Waddell if you pay your CC balance off completely, before or on the due date every month, you don't have to worry about being charged the APR/interest or any fees. The only fee you would have to pay on a CC is an annual fee which is standard on a premium CC.
PAY IT ALL ON TIME AND APR DONT MATTER!
Girl this is amazing! I literally could not understand this before I saw your video! I wish everyone explained this like you
Thank you so very much for your video I was able to get a better understanding on How Credit Card Companies Charge you for Interest ❤❤😍😍😊😊
Thanks for posting that really helped to understand it a lot better. Hope you can continue your blogs. Love to watch them. Thanks again
Thanks!
credit cards company's can call us freeloaders all they want. for getting rid of travelers checks and being difficult I call credit card banks and fincinacial company's garbage.
Just subscribed. WHAT A HELPFUL VIDEO! THANK YOU SO MUCH!
I agree! This was so helpful!
Basically:
Paying on time = No APR fees and no interests?
So, if you get a Credit card for 12 months 0% APR you have 12 months to pay your credit?
But you will have to pay interest fees?
And what is a Balance transfer fee?
If you get 12 months 0% APR, you just have to pay the minimum and they wont charge you interest for those 12 months but if you still owe money at the end of those 12 months, they will start charging you interest
Balance transfer fees are what they charge you for moving money from one credit card to another, usually 3-5% of the money that you move with a minimum of a $5 fee
Freeloader here. Anything with “free” in the name. Free dog shit? Hell, it’s FREE! I’m a freewheelin’ freebasin’ freekazoid.
Lmao my Apr is 49.99
It's aimed at those unlikely to be accepted for credit
Can't complain at least I have the chance not to pay interest
So what if I want to get a credit card to build my credit in order to make 1 purchase for repairs on my vehicle? Used that fund and make monthly payments?
I have 0% interest rates on my Barclays and Amex cards thanks to maliandebt
Great stuff - as always. I like "freeloaders" (except it seems a bit derogatory!) and "revolvers" but use "convenience user" and "borrower" in my classes.
Thanks, but it would have been good to give some examples. My cc apr is 29.99% , and i rack up $600 off purchases for the month. For simplicity... Lets say that 600 is also my daily average. So my daily apr will be 29.99/365 = 8.22%
So my interest for the month should be 8.22% of $600 = $49.43
Please confirm my math's correct
About to setup Second credit card from a 500 lim to a 6000 as have now got a new job making 1,200 monthly. I’m looking to make a purchase of 4500.. 0% for 12 months and 29%apr I’m about to do it now.. just checking that’s all fair correct ?
should I sign up for a Capital One Quick silver credit card if it says 0% intro APR for 9 months with a 28.99% variable APR after that
1.5% cash back on every purchase, every day $0 annual fee?
My credit score is 636. I’m trying to build it up to 700 and over.. Don’t owe anyone anymore. But I’m trying to build up my credit score. Looking to get another credit card. Not to over spend,but to use it for emergencies. I’m hoping that could help build up my score by paying on time..
What does 0% apr first 15 months mean when opening new account? Does that mean i get 15 months time to pay statement balance??
It means the interest you pay for those 15 is zero BUT every month you still get a bill that you must pay to keep your credit in good standing. If you pay nothing towards the card that whole time then you’ll be charged late fees and get a bunch of late payments on your record so make sure to pay every bill. Also, pay close attention to the end of the 15 months because if that date comes and you haven’t paid then they will hit you with big interest fees!!!
@@missbehelpfuldo you know if the blue cash american express is any good. For like paying monthly bills
18-29% apr after the 15 months 🤔 wondering if I should apply supposedly with this card one can use right away after approval
@@1smae100 did they send you that promotion?
Hi! Thanks for the great overview of APR. I think it would've helpful to actually input some numbers to show how to calculate. Do you have a video of that?
APR is so hard to breakdown and understand!! I loved her explanation. So simple.
I wanted to say I followed your advice 4 years ago right before the pandemic. My credit went from low 500s to 760+! Thank you!
Great video - really helpful 😁 Thanks for sharing ✨
im still confuse how can i become a free loader. If the allowed me to have 300 to spend does that mean i owned them 300 which mean each month i have to pay them apr of 300 even if i dont use the 300? How can i pay that off.
Tuyet Tran it's really not how much they allow you to "have" but more how much they allow you to "use". For example, if they give you a card that allows you to use up to $300 and you use $0 of that $300 credit limit, then you won't owe them any money. And to become a free loader basically is whatever amount of credit you use within the $300 credit limit means you pay off the credit you used completely and on time to avoid being charged the APR/interest.
Hi, if I pay for purchases I made with a credit card sooner than the due date. Will it have the same good impact? Will it be worse? Will it be better?
No impact if you pay after the statement closing date and before the due date (that's called the grace period) only impact happens if you pay it down before the statement closing date. Thanks for watching and commenting!
4 years later and still the best video!!! I'm 24 and just now understanding this in addition to getting my first credit card 🖤🖤 thankyou so much for the video !!
Bella como siempre!! Very informative. You have no idea how you are helping me... please keep posting videos! (Aka @spanglishjerk instagram + twitter)
Thanks for watching!
So does you apr percentage even really matter if you pay it off on time each month?
yeah my APR is 30 but it's my first credit card and I pay it off every month don't go over a certain amount! thanks for the explanation
Yo...you're pretty af. xD I was distracted. But thank you for this information.
just wana clarify, APR is meaningless if you are a beast and just pay your card off every month. thank you
i watched this whole video & still don't get how you calculate an APR .. fml
Aww sorry Jackie! Lemme know if there's a specific question I can answer. I know that APR was tricky for me at first too!
I've been told that if you pay off your entire monthly due then your credit score won't go up
Your credit score goes up when you pay off your monthly balance to zero and if you can keep your credit utilization under 30% of your credit limit.
Thank you for this vid it was very helpful, I'm new to the credit card game. now I get it.👍
She's intelligent and beautiful my gawd
I'm confused. What if you pay off the balance over time before the APR goes into affect?
If my credit score sucks, but i do get preapproved for a credit card, with a high apr can i get the apr lowered if my credit score improves?
waiste of time. How It Works is not just talking but an actal exmaple. Poor Video
You are very beautiful and thinks you have help me
So basically pay it on time and pay the full amount? Gotcha Nad that APR will not get me thank you!
Imagine if they taught this in school 🙌
If you have no interest and you pay everything in full. Does that mean 0 APR?
applying for my first credit card so im doing all type of research and this was very helpful
I got a pretty good credit score but my APR is high, is that due to my credit being recent. My credit is like a year old
Thank you. You explained it the best. Got straight to the point.
Thanks for watching and commenting!
Thank you Pretty Rose 🌹 that’s helpful and I am Freeloader 😎
Yes yes Yes! Thanks for this. I've been on a credit related video binge because I want to learn and this video was perfect!
Glad to hear it!
My question is.. Shes beautiful and helpful...... But why
Stunning!!! You resemble and sound like Melissa Fumero. . .
decent video, but you need to provide arithmetic examples to to along with.
So if your average daily balance is 0, then you aren’t charged any interest?