This is a spot in cyberspace designed specially for you. Find information, take a quiz or read stories about other immigrants. The language of credit cards can be very confusing for those not steeped in financial argot. From A to Z, we're here to help. Adjusted balance A method used by some card issuers in which they subtract all payments made during the month, then add the finance charges.
Many credit cards come without an annual fee.
The interest rate reflecting the total yearly cost of the interest on a loan, expressed as a percentage rate. Under the federal Truth in Lending Act, it must be calculated in a standard way to allow consumers to make 'apples to apples' comparisons of lending terms. This is the method by which most credit cards calculate your payment due. An average daily balance is determined by adding each day's balance and then dividing that total by the number of days in a billing cycle. The average daily balance is then multiplied by a card's monthly periodic rate, which is calculated by dividing the annual percentage rate by 12.