If your issuer uses this method, it means the interest on your card is compounded on a daily basis. They do this by multiplying that rate by the amount you owe on a card at the end of each day.Īs the Consumer Financial Protection Bureau (CFPB) explains, that amount is tacked on to the previous day’s balance. Some credit card issuers rely on something known as the daily periodic rate to determine how much interest to charge.
