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What are Finance Charges and how are they figured?

April 26, 2017Charges figured Finance

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What are Finance Charges and how are they figured?

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Finance Charges are what credit card companies charge in exchange for letting you carry balances. You can avoid a Finance Charge if you pay your balance in full each month. Finance Charges can be calculated in different ways. Your account statement describes the method that applies to you. In general, your balance for Finance Charges is based on either an Average Daily Balance, an adjusted balance, a previous balance or an ending balance.