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How does Credit Card interest work?

We’ll help you decipher the jargon around Card interest so you really understand how it works when it applies to Credit Cards.


What is Credit Card interest?

When you use your Credit Card, you are borrowing money – and will be charged interest unless you repay the full balance within the specified period. The amount of interest you will be charged depends upon:


  • The interest rate of your Credit Card
  • The amount you spend
  • When you spend it
  • When you pay your Credit Card bill


When you receive your statements, the details of your purchases and the amount of interest you have been charged will be clearly displayed.

How is Credit Card interest calculated?

Interest is calculated on any unpaid balance from the due date of your previous month’s statement. It is applied to your closing balance at the end of each day and then added up to make the current statement.

Credit Card Terms

Charge & Credit Cards Explained


Has talk of interest, annual fees, rates and percentages left you feeling confused?


Our simple Credit and Charge Card guides are a great place to start.


How Credit Cards and Charge Cards work

Where is American Express accepted


What is surcharging


Using your Card Abroad


What Credit Card fees am I expected to pay


What is Credit Limit


How to choose a type of Card


What is a Charge Card


How to pay off your Card


How to apply for a Credit Card


What is Credit Score

American Express Benefits


Your security and protection are our priority. Our technology has been designed to give you peace of mind when using your Card.



Access to our customer service is available 24/7 by phone, text or email.



Contactless is the quick, easy and secure way to make payments - simply touch your American Express Card on the reader, wait for the beep and you're done. What's more, with Amex Pay and Apple PayTM you can even pay with your phone.

Compare AmEx Cards

American Express Offers a range of Credit Cards with different rewards and benefits tailored to your lifestyle and interests.