2006-10-29 12:23:23 · 6 answers · asked by FutureTechnology 1 in Business & Finance ➔ Credit
Do they charge you if you pay off your balance in full every month? Or if you have a zero balance?
2006-10-29 12:37:02 · update #1
A finance charge is interest on the money you have not paid on your credit card by the due date. If you pay it all off by the due date there would be no finance charge.
2006-10-29 13:21:59 · answer #1 · answered by Gone fishin' 7 · 0⤊ 0⤋
It's the percentage (whether you call it APR or monthly rate) that they charge you on any balance that you don't pay off by the due date. They grant you a grace period from when billed, usually 20-25 days, where you don't incur the finance charge IF you pay the ENTIRE balance in full by the due date. If you don't, then the finance charge is incurred.
So, if you use credit cards correctly, you can have a month free loan if you pay off the balance; if not, you have a high interest debt that you have to service.
2006-10-29 12:37:45 · answer #2 · answered by MJ 4 · 0⤊ 0⤋
No, they don't charge you if you have a zero balance or pay your balance (full amount) on the due date.
But if you keep a balance on your account, they charge you some percentage (check your ' terms and agreements' section for the rate) every month. Some credit cards even have annual fees on the top of the finance charges.
2006-10-29 12:48:10 · answer #3 · answered by nidia 1 · 0⤊ 0⤋
It's what the credit card charges you for using their money.
2006-10-29 12:26:08 · answer #4 · answered by Momma Jo 6 · 1⤊ 0⤋
If you pay off your balance every month you do not pay any interest.
2006-10-31 15:16:30 · answer #5 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
They won't charge you if you have 0 balance.
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2006-10-29 14:31:44 · answer #6 · answered by Anonymous · 0⤊ 0⤋