According to Bankrate, there are four different methods used to calculate finance charges for credit cards, all of which are dependant on the specific type of balance a person carries. The different types of balances include previous, two-cycle, daily and average daily.Continue Reading
In order to calculate the finance charge for a previous balance, a credit card company goes by the balance owed at the beginning of a full billing cycle. The two-day cycle finance charge is determined by any debt that is already paid on the account. For example, if the account begins with a zero balance, and a person charges $300 to it but pays $250 by the due date, the person is going to have a finance charge on the original $300 as long as it's double-cycle billing.
With the daily balance finance charge, the balance carried every day of the billing cycle is multiplied by a tiny fraction of the account's annual percentage rate before it's all added together. For the final balance the daily average balance is multiplied by about one-twelfth of the annual percentage rate in order to determine the finance charge.Learn more about Credit & Lending
A person with bad credit typically qualifies for most prepaid credit cards as long as he can provide valid identification. While these cards often carry the Visa or Mastercard logo, and merchants who accept credit cards accept them, they are actually prepaid debit cards. Users only spend what they deposit.Full Answer >
First Savings Bank does not directly state the limits attached to its credit cards, which may vary by person. Credit limits assigned to such cards are ultimately determined by the credit score and income of the applicant, with payment history also taken into consideration, explains U.S. News & World Report.Full Answer >
Finding fair terms for credit cards depends more on a person's credit score than on the credit card company, according to Consumer Reports. However, no creditor is always safe. The consumer must always review the terms carefully and compare offers before selecting a card to see the most benefit.Full Answer >
The number of credit cards a person has is not as important as what is done with those credit cards. Having too many cards can negatively affect a credit score and the ability to obtain loans. You should have between three to five credit cards at most.Full Answer >