The credit card interest works upon the per-day interest rate. When the interest rate is charged on daily basis, the next thing that can happen over the credit card is the payment of a penalty over non-payment of interest till the due date.
A credit card is a plastic card issued by financial institutions for lending a certain limit amount to the cardholder for a certain period of time. The amount of the credit card needs to be paid back to the bank along with the interest before the due date.
In the given case:
Assume an Annual Percentage Rate of 12% then the monthly rate is 1%, so the daily percentage rate is 0.0329% (12%/365).
The initial settlement of $100, the credit card balance reduces to $200. Daily the card company will add 0.0329% interest to the balance until you pay off the debt.
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