Six in 10 Credit Card Users Don’t Know Their Interest | will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by will always be from Be Scamsmart.


Michael Brown

Content Writer
Published: 11/02/2022

Research from YouGov suggests that 60% of credit card users remain unaware of how much interest they are charged.

In addition, not a single survey participant could correctly calculate how much a typical credit card purchase would cost after interest is considered.

“It is shocking that well over half of credit card users don’t know how much interest they are paying on their purchases,” said Alex Marsh, Head of Klarna UK.

YouGov, which was commissioned to conduct this research by Klarna UK, surveyed 2,000 British consumers to gather their data.

Participants were presented with a credit card sign-up flow and were asked to calculate the total cost, including interest, of a typical purchase.

“Credit cards are incredibly complex products, with layers of different interest rates and charges. This latest research proves what we’ve long suspected - that the majority of customers struggle to understand exactly what they’re being charged,” said James Daley, Managing Director of Fairer Finance.

If you would like to read more on how interest on credit cards work, read our guide here

How to manage your interest

Calculating the exact cost of your credit card purchase may be complicated, according to Samantha Owens, Star Ratings and Personal Finance Analytics Manager at Moneyfacts.

However, she noted that there are small changes consumers can make to ensure they are getting the best rate possible.

“Credit cards do offer the consumer a level of protection and flexibility. With a range of 0% deals for purchases and balance transfer that offer borrowing with no interest for up to 33 months, they can save the consumer a vast amount when compared to other credit products,” she explained.

In addition, Owens recommended consumers regularly check their debit orders for changes in interest being charged.

“It’s easy when paying by direct debit and having statements online to not check the interest rate that is being charged, which can change through the term of the card. But taking the time to go online and check this rate against other rates on the market can save hundreds of pounds in interest,” she elaborated.

However, Owens warned consumers be wary of introductory deals which offer enticing rates for a welcoming period.

“Consumers should make a diary note to transfer balances that start to charge interest after the 0% deal ends. This will stop any unnecessary charges,” she recommended.

Overall, keeping track of interest rate changes, ensuring payments are made on time, and not using credit card payments for high-rate transactions are key to managing the interest on your card.

What credit card is best for me?

If you are in the market for an interest-free credit card, use our comparison table here. You will be able to find out the total cost of borrowing, your payback period and APR among other variables.

Alternatively, if you are unaware how to calculate the interest on your credit card, use our free minimum repayment credit card calculator. This will let you know how long it will take to clear your balance when only making the minimum repayments. All you will need to use this tool is your outstanding balance and the minimum payment amount or percentage.


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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