How to Calculate Credit Card Interest and Terms

Using a credit card as a payment tool is the same as making a loan to cover your purchases, which means you have to pay the amount of money that has been used in the end. Not to mention, the bank will charge a fee for using the money, or commonly called interest.

As a credit card user, it is important for you to understand the conditions that apply to this interest determination, as well as how to calculate the interest charged, so that you are not confused by the emergence of additional fees in the form of interest on your credit card monthly billing statement.

Before discussing further on the calculation of credit card interest, we provide a quote hereinafter Bank Indonesia provisions concerning the charging of credit card interest.


Provisions for Credit Card Interest Calculation

Provisions for Credit Card Interest Calculation

In the framework of protection of Credit Cardholders, the calculation of interest arising from Credit Card transactions must be performed by the Credit Card Issuer with the following conditions:

  1. Calculation of interest days for credit card debt is based and starts from the date of posting (posting) Credit Card Issuers. The posting date is the real date when the Credit Card Issuer makes payments to the Acquirer for Credit Cardholder spending transactions, or makes payments to the ATM operator for cash withdrawal transactions using a Credit Card;
  2. Credit Card interest calculations for subsequent bills are made based on the remaining credit card bills for shopping transactions and / or outstanding cash withdrawals (outstanding);
  3. Fees payable, penalties payable, interest owed, and bills before maturity, are prohibited from being used as a component of calculating Credit Card interest;
  4. For purchase transactions, interest is charged if the Credit Card Holder:


May you be more careful!

credit cards

Well, that is what we can share about the conditions and how to calculate your credit card interest. Hopefully it can be useful and help you be more careful in calculating the amount of interest on your monthly bills. However, we still recommend that you always pay your bills in full before they are due. If you can free interest, why not?