What do finance charges of a credit card mean?
catchandthrow22 asked:
I am a college student, have no credit, and am looking for a nice solid reward card that gives cash back. I was looking at the AOL Visa Rewards card, but it has a minimum $1.00 finance fee, what does that mean?
I am a college student, have no credit, and am looking for a nice solid reward card that gives cash back. I was looking at the AOL Visa Rewards card, but it has a minimum $1.00 finance fee, what does that mean?
Also, any other card recommendations?
Thanks.
Tags: Aol Visa, Visa Card, Visa Rewards
June 18th, 2009 at 7:23 am
That’s the interest charge. I can’t believe you’re in college and couldn’t figure that out.
June 21st, 2009 at 11:12 am
It means for instance if you have a balance of $50.00 with an APR at 12.99%. The interest you pay for that billing cycle is .53. If you paid off that entire balance by the due date, you’ll pay no interest.
However, if you decided to pay only $15 minimum, the remain will be approximately .32 in interest. Instead of charging you ..32 interest, credit card company will raise that to a minimum finance charge of $1.00. Which means anything less than $1.00 in finance charge during that billing period will raise to at least $1.00 whether your finance charge should be .30 or .80, the minimum will be $1.00
Some company charge the minimum finance charges is $1.50
June 21st, 2009 at 9:21 pm
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June 22nd, 2009 at 12:53 pm
I found interesting information about your answer Here:
credit cards:
Good Luck!