What Is Residual Interest?

An explanation about residual interest on your credit card bill

See an interest charge you didn’t expect on your bill? Residual interest occurs when you make purchases with your card but don’t pay your full balance each month.

If you carry a revolving balance—meaning you don’t pay your entire monthly balance—you may be charged residual interest on the balance you carried over from the previous month, even if you pay it in full that month. Residual interest accumulates between the date of your credit card statement and the date you make your payment.

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