personal-finance
How dynamic interest rates on credit cards work
Sep 08, 02:09

Last week, a private lender launched a new set of credit cards. What's unique about this card offerings is that the lender offers dynamic interest rates. Known as annual percentage rate (APR), it starts from 0.49 percent to 3.49 percent a month . Credit cards charge interest if you pay only the minimum amount due and extend your credit. The devil lies in the detail. Customers who want a minimal interest on their credit cards must maintain a high balance. The lowest interest rate slab (5.88 percent per annum; one of the lowest annual interest rates on credit cards) requires an average monthly balance of Rs 10 lakh in the last quarter.

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