What Is a Finance Charge, and How Do I Avoid Paying One?
If you're savvy, you can avoid credit card finance charges entirely.
If you pay off your statement balance completely during a grace period, you could dodge interest charges altogether. (Getty Images)
Borrowing money typically costs money, and credit cards are no exception. One of the advantages of having a credit card is that you don't have to pay off your balance each month. But that perk comes at a price, called a finance charge.
Others who made the top ten include Amazon's Jeff Bezos at fifth on the list, Mark Zuckerberg of Facebook at sixth, Oracle's Larry Ellison at seventh, Michael Bloomberg at eighth, and tied for ninth are David and Charles Koch.
Here's what you need to know about credit card finance charges, how they're calculated and what you can do to avoid them.
How Credit Card Finance Charges Work
Carrying a balance. If you don't pay your balance in full by the due date each month and there is no promotional 0% APR period, you will incur a finance charge based on your card's APR and the remaining balance.
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Generally, credit cards require relatively low minimum payments compared with balances. While some credit card issuers include interest charges in the minimum payment, others just charge a flat percentage. "If this minimum is less than the accrued interest," says James Philpot, certified financial planner and associate professor in the department of finance and general business at Missouri State University, "you will effectively be borrowing more money from your card issuer in order to pay interest."
Transferring a balance. If you transfer a balance from one card to another, you may incur a finance charge in the form of a balance transfer fee. You may also pay interest on the balance unless the card has an introductory 0% APR balance transfer promotion. Check the card's terms before you submit your request.
Requesting a cash advance. If you use your credit card to get cash from an ATM, interest will start accruing immediately from the date of the transaction, with no grace period. The APR for credit card cash advances is often higher than the APR for purchases.
Making a foreign transaction. A foreign transaction on your credit card, whether in a foreign country or currency, can incur a foreign transaction fee. This fee is typically about 3 percent of the transaction.
How Credit Card Companies Calculate Finance Charges
In October last year North Korean border guards attempted to shoot down some balloons, triggering a brief exchange of heavy machine-gun fire between the two sides.
Any decision by China’s policymakers to begin selling down the country’s huge reserves would have a large impact on markets.
西门子(Siemens)去年破纪录了，通过将医疗部更名为Healthineers一举斩获两项大奖。该公司不仅因为将两个单词生拼硬造出另一个无比蹩脚的新词从而荣获“马丁?卢克斯奖”(Martin Lukes prize)，同时还凭借现场视频中一位倾情演唱的CEO和身着氨纶紧身衣卖力献舞的员工们，摘得史上最尴尬企业歌曲的金牌。
Soon after the conclusion of the 2016 national post-graduate entrance examination on Sunday, the Ministry of Education was informed of suspected leaks of exam questions.
Although Facebook is blocked in China, Tencent has linked WeChat to Facebook, which means that users outside of China can use the service in conjunction with the world's most popular social network. That is a boon for WeChat in Southeast Asian countries like Indonesia, Thailand and the Philippines, which have large numbers of Facebook users. Tencent has offered WeChat in languages for all three markets.
Grab your rolling bag, and pack your patience. The holiday air travel season is about to begin. And if you want to have a stress-free trip, the best advice we can give is to fly west.
You`d love to know the balance of forces that shape and move your ponytail, right? That`s why Joseph Keller, Raymond Goldstein, Patrick Warren and Robin Ball received this igNOMINIOUS prize!
Note, however, that some credit card issuers compound interest on a daily basis, so your calculation may be even more complicated than this one.
How to Avoid Paying Credit Card Finance Charges
Employment growth exceeded projections.
Take advantage of your grace period. Most credit cards offer a grace period on purchases. If your credit card has one, it typically runs from the end of your billing cycle to your payment due date. By law, you must receive your credit card bill at least 21 days before it is due.
Apple tops the list of World's 500 Most Influential Brands for 2016, compiled by New York-based World Brand Lab and released last Monday.
Apple Chief Executive Officer Steve Jobs holds the new " iPad" during the launch of Apple's new tablet computing device in San Francisco, California, in this January 27, 2010
'I thought I was going to sell the app in the Apple store for a pound or two each, and then I'd use the money to buy a new computer,' says D'Aloisio. 'I'd never had any contact from an investor before. And now here's an email supposedly from a Hong Kong billionaire. It sounded dodgy. I didn't respond the first time. They had to email me again.' D'Aloisio was accompanied by his mother and father ('they were a bit bewildered, it was kind of insane') as he took a meeting with Horizons Ventures's representatives in London in August 2011. The meeting ended with D'Aloisio receiving a seed investment of $300,000.
These contraptions, including a nano-sized car, are so small that they’re invisible to the human eye.
英国剑桥大学(University of Cambridge)佳奇商学院(Judge Business School)的排名上升5个位次，至第5位。这不仅是该学院首次跻身前5名，而且还是伦敦商学院在这个榜单上首次失去英国最佳商学院这个头衔。
Its selection of Mr Trump neither accords with the votes cast in the election nor reflects judgment of the candidate’s merits, as desired by Alexander Hamilton.
Complying with the law may prove challenging, even if improvements ultimately reduce long-term costs. In addition, 2015 is the deadline for buildings to convert from No. 6 heating oil to No. 4 oil, which is less polluting.
Use a 0% APR promotion. Some credit cards offer an introductory 0% APR promotion to new cardholders, waiving interest charges on purchases, balance transfers or both transactions for a set period.
New Year time is here. I hope you have a wonderful New Year. May every day hold happy hours for you.
The term was first devised by psychologist Johan Denollet from Tilburg University who created a quiz to identify a type D personality.
Mr Cook’s decision to expand its cash return programme of dividends and share buybacks helped to defuse the situation with the activists, returning $94bn to date. In the end, he stared down the challenge just long enough for the next wave of iPhone growth to hit and new products to emerge from Sir Jonathan Ive’s workshop.
*Guest Actor in a Comedy Series: Peter Scolari, “Girls”
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Forgo certain activities. Because many cards charge fees for balance transfers, cash advances and foreign purchases, consider refraining from these activities, or try to find a card that waives these fees.
Some balance transfer credit cards, for instance, will waive the balance transfer fee for new cardholders for a short period. Also, many travel credit cards don't charge a foreign transaction fee.
Always Read the Fine Print
For: The National Board of Review gave it their best film, actor and actress awards.
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China’s trade with the rest of the world fell sharply in October from a year earlier, with imports of raw materials particularly hard hit as slowing Chinese investment feeds through into weaker demand in the world’s biggest trader of goods.
Alumni from the Swiss school also have the third-highest salary, at $114,449, adjusted for purchasing power parity, behind those from the Indian Institute of Management at Ahmedabad, on $116,476, and IIM Bangalore, on $116,094. St Gallen is also top for the quality of its careers service.
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"Twenty Two" featuring the tales of 22 comfort women became the first Chinese documentary to surpass 100 million yuan at the box office.
n. 宣言，声明 vi. 发表宣言
Search giant Google has replaced iPhone makers Apple to be the world's most valuable company in the Brand Finance's Global 500 2017 report.
Month-on-month producer prices rose 0.7 per cent, up from 0.5 per cent in September.