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Understanding Credit Card interest, and your Card's APR (annual percentage rate), will help you know exactly how much paying with your Card could cost.
When you use your Credit Card, you're borrowing money, and unless you pay your balance in full within the specified, statement period, you'll be charged interest on what you owe.
APR is a way of measuring the yearly all-in cost of credit. It takes into account the interest rate, as well as any additional costs associated with a Card, like the annual fee. As an annualised percentage, APR allows you to easily compare credit products and their affordability.
Your purchase and cash interest rates will move up and down in line with the Bank of England Base Rate. Base Rate changes will not apply to any promotional interest rates. Read more on Base Rate and how it may affect your interest here.
Rates may also vary based on your individual circumstances
Most Credit Card holders can avoid accruing Credit Card interest by paying off their full balance each month. But if you pay anything less than the full balance, such as the minimum payment, you’ll incur interest on outstanding balances, as well as any previously charged interest.
Details of your purchases and the amount of interest you’ve been charged will be clearly displayed in your Credit Card statements.
Read more on Credit Card repayments.
The amount of interest you'll pay depends on:
At American Express we calculate interest on any unpaid balance daily, and add the interest to your account every month when we produce your statement1.
| Description | Example |
|---|---|
| Your closing balance each day | £1,500 |
| X | X |
| Your daily interest rate* | 20.74% / 365 days |
| = | = |
| Your daily new interest charges | £0.85 |
↓ |
↓ |
Daily interest charges are added up and presented on your monthly statement in one sum
*The daily interest rate is your annual interest rate divided by 365 days
If you pay off your entire Credit Card bill on, or before, the statement due date (within the interest-free period), you won't be charged interest. If you opt to pay off your balance over several months, interest will be charged on the amount outstanding. Interest will be applied up until the date you fully repay your balance.
View and keep an eye on your balance and payment due date by logging into the American Express® App or your Online Account. Read more on how to avoid Credit Card fees here.
Discover our Credit Cards and Charge Cards to find the right one for you.
The dates for which your statements are issued and report transactions for. Generally, your statement period will be every 30 days, and actual dates can vary slightly from month to month.
Type of charge incurred as a result of borrowing money and not repaying in full within the indicated time. Interest is usually expressed as an annual percentage rate, also known as the interest rate.
The amount you owe at the end of a particular statement period.
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 Credit Card fees am I expected to pay
How to apply for a Credit Card
Understand fees
Everything you should know about Credit Card fees
Discover what a credit card limit is and how they work
Interest explained
See how we calculate your monthly interest rates
Read Section 2.2 for an explanation on interest rates here.
