Calculate the average balance and finance charge
multi the unpaid balance by the monthly interest rate
$39.59
Calculate the finance charge on a credit card balance of 3,299.19 at a monthly rate of 1.2%.
Calculate the finance charge on a credit card balance of 3,299.19 at a monthly rate of 1.2%.
A finance charge is interest charged by a lender on the unpaid balance of a loan.
A finance charge is interest charged by a lender on the unpaid balance of a loan.
Paying the bill as early in the payment period as possible will make the average daily balance lower and therefore minimize the finance charges.
Charging the previous balance
VISA uses Average Daily Balance (including cash advances). The average daily balance method of calculating finance charges uses the average of your balance during the billing cycle. Your average daily is the sum of your balance on each day of the billing divided by the number of days in the billing cycle.
* Interest (Finance Charge) is charged on every loans and credit card accounts that are not paid in full by the payment due date The Finance Charge formula is:Average Daily Balance x Annual Percentage Rate (APR) x Number of Days in Billing Cycle ÷ 365 * To determine your Average Daily Balance:
Visa uses the method they call "average daily balance (including new purchases)."
Charging the previous balance