What is a finance charge on a credit card?
I was looking at a card and it said it had a finance charge of 50 cents. Is that a charge every time i use the card or on my monthly bill. Cuz if that is everytime that seems like a bit of money. hypothetically lets say you use your card to buy common items everyday, twice a day you would ring up $30 a month in finance charges and $360 a year, am i right or wrong?
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Comment by PooPooLaTrash
If they charge you a transaction fee every time you use your card, yes those can add up. Finance fees are different.
Posted on August 24, 2010 at 4:54 am
Comment by bdancer222
That is probabaly a minimum finance charge — if there is a finance charge at all, it will be at least 50 cents. Finance charges are the interest charged on the balances your carry.
Most credit cards offer an interest free grace period between the date of purchase and the due date. If you pay your balance in full every month, there is no interest, no finance charge.
Posted on August 24, 2010 at 5:54 am
Comment by Avisart
To find the answer to your question, you can search on this site
http://freearticlesdb.com/search/?a=search&q=finance&sa=Go
Posted on August 24, 2010 at 6:18 am