What To Know
- ” In this comprehensive guide, we’ll delve into the nuances of the Southwest Credit Card’s interest policy, providing you with a clear understanding of how it works.
- If you transfer a balance from another credit card to your Southwest Credit Card, you will be charged an introductory balance transfer fee of 3%.
- By paying off your balance in full each month, utilizing the grace period, and being mindful of balance transfers and cash advances, you can avoid costly interest charges and make the most of your Southwest Credit Card.
Navigating the world of credit cards can be a daunting task, especially when it comes to understanding interest charges. If you’re considering the Southwest Credit Card, you may wonder, “Does Southwest credit card charge interest?” In this comprehensive guide, we’ll delve into the nuances of the Southwest Credit Card’s interest policy, providing you with a clear understanding of how it works.
Understanding Interest Charges
Interest charges are fees that credit card companies impose on unpaid balances. These fees are typically expressed as an annual percentage rate (APR). When you make a purchase with a credit card, you are essentially borrowing money from the credit card company. If you don’t pay off the balance in full by the due date, interest charges will start to accrue on the remaining balance.
Southwest Credit Card Interest Policy
The Southwest Credit Card has a variable APR that depends on your creditworthiness. The current APR ranges from 17.49% to 29.49%. If you have a good credit score, you may qualify for a lower APR. However, if your credit score is lower, you may be subject to a higher APR.
Grace Period and Interest-Free Days
The Southwest Credit Card offers a 21-day grace period on purchases. This means that you have 21 days from the date of purchase to pay off your balance without incurring any interest charges. If you pay off your balance in full during this grace period, you will not be charged any interest on your purchases.
Interest Charges on Balance Transfers
If you transfer a balance from another credit card to your Southwest Credit Card, you will be charged an introductory balance transfer fee of 3%. After the introductory period, the balance transfer APR will be the same as your regular purchase APR.
Interest Charges on Cash Advances
Cash advances are treated differently from purchases. The Southwest Credit Card charges a 5% cash advance fee, plus interest at the cash advance APR. The current cash advance APR is 29.99%.
Avoiding Interest Charges
The key to avoiding interest charges on your Southwest Credit Card is to pay off your balance in full each month. If you can’t pay off your balance in full, try to make at least the minimum payment due. By making timely payments and keeping your balance low, you can minimize the amount of interest you pay.
Final Note: Managing Interest with Southwest Credit Card
Understanding the Southwest Credit Card’s interest policy is essential for managing your finances effectively. By paying off your balance in full each month, utilizing the grace period, and being mindful of balance transfers and cash advances, you can avoid costly interest charges and make the most of your Southwest Credit Card.
Quick Answers to Your FAQs
Q: What is the APR on the Southwest Credit Card?
A: The APR on the Southwest Credit Card ranges from 17.49% to 29.49%, depending on your creditworthiness.
Q: Is there a grace period on purchases made with the Southwest Credit Card?
A: Yes, the Southwest Credit Card offers a 21-day grace period on purchases.
Q: Are there any fees for balance transfers on the Southwest Credit Card?
A: Yes, the Southwest Credit Card charges an introductory balance transfer fee of 3%.
Q: What is the cash advance APR on the Southwest Credit Card?
A: The cash advance APR on the Southwest Credit Card is 29.99%.
Q: Can I avoid interest charges on the Southwest Credit Card?
A: Yes, you can avoid interest charges by paying off your balance in full each month.
