official source

Thomas Shaw04 Nov, 2022Business

We are all aware credit card organizations levy interest rates on every obtain we make through our credit card. But have we ever thought about how come it will cost a definite percentage of interest rate? The answer is easy - for each and every credit history we acquire, the bank whose credit card we personal, compensates the billed volume on our account regardless of quantity of credit history undertaken (of course, in the credit history reduce published on the credit card page). As soon as the financial institution will pay on our account, it seems to lose one thing out from its budget or CRR. To preserve the loss, it expenses interest rate on every single buying ours.

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