Question

What is interest? How does interest affect credit card purchases?

Answer 1

Answer: Interest is money paid regularly at a rate that the money is lent at. Credit card purchases can create interest because you not paying off the full credit balance by the due date each month.

Answer 2

Step-by-step explanation:

money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.

Credit cards charge interest when you don't pay off your full balance by the due date each month. When you carry, or revolve, a credit card balance from month to month, interest is charged on a daily basis, and it affects both your existing balance and any new purchases that post to your account.