What is a finance charge and when does it occur?
Finance charges include interest and transaction fees on your credit card account. If your credit card account has a grace period on purchases and you pay the balance in full every month by the payment due date, then you will not pay interest on those purchases. By paying the entire balance due, not just a part of it, you’ll be taking advantage of the grace period on purchases. If you pay less than the full balance, or your credit card account has no grace period, then there is no grace period at all and your entire credit card balance accrues interest. Please note, cash advances and balance transfers have no grace period, so even if you pay your balance in full every month, you will pay interest on outstanding cash advances and balance transfers.
