why do they do this, is it because im only making the minimum
payment? or because i made a big purchase not to long ago?
I currently owe $970
2007-03-09 10:38:07 · 6 answers · asked by Jay 2 in Business & Finance ➔ Credit
Finance charges for the carry forward balance.
You keep a balance, you pay finance charges.
2007-03-09 10:43:38 · answer #1 · answered by pepper 7 · 0⤊ 0⤋
If you continue only making the minimum payment on that $970, it will take you about 4 years to pay it off and will cost you about $450 in interest.
$14 is the interest charged on the outstanding balance. You will get an interest charge every month until the bill is paid in full.
Look at it this way. I don't know what you bought for $970 but by the time you finish paying for it making minimum payments, it cost over $1400. It's not such a great deal when you look at it that way, is it?
2007-03-09 11:10:55 · answer #2 · answered by Faye H 6 · 0⤊ 0⤋
If your statement reflects that the last month's finance charge is $14 on a balance outstanding of $970, that comes to about a 17% interest rate, which is totally normal for a credit card.
So the answer to your question is: yes, it's because of your big purchase not too long ago. Welcome to the world of debt.
2007-03-09 10:46:48 · answer #3 · answered by Marko 6 · 1⤊ 0⤋
A finance charge is generally the interest.
Some cards also might have a monthly fee or a fee for some sort of "credit protection program".
2007-03-09 10:50:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It is the interest they charge for the balance you are carrying on the account.
If you paid more then the minimum, the interest amount would not be as high.
They are not penalizing you for paying the minimum or making a large purchase.
As long as you carry a balance, they will charge interest.
2007-03-09 10:47:33 · answer #5 · answered by echo 7 · 0⤊ 0⤋
Yes, that's how credit cards work...if you don't pay off in full, you are charged finance charges.
2007-03-09 11:30:07 · answer #6 · answered by Jason 3 · 0⤊ 0⤋