/ Ask Terry Questions / Finance Charge on credit card

Finance Charge on credit card

By Terry Savage on August 27, 2022 | Credit/Debt

Hello – I do not understand how CC charges finance charge – I have a reg Chase CC – I was short on my payment for the month of .40cents. Chase charged me $9.49 Interest charge for the month.
Cause used 16.49% Apr times balance Subject to interest @ $677.39. Since I always pay my balance in full they waived the Interest charge – I thought I would inly be charge interest on balance not paid of .40 Chase said no if not paid in full they charge me interest on ADB which in my case was $677.39 maybe you can tell that this is correct – makes no sense to me

Terry Says

If their agreement says they can charge interest based on the average daily balance, then they can do it! They send out those agreements annually written on thin paper and in fine print! I never bother to read mine, either. Now I know what they are hiding.
Believe me, Chase isn’t going to rip you off — unless they are entitled to do it via your card agreement!

Recent Credit/Debt Questions

money

ASK TERRY

a personal
finance question