If you want to calculate your own finance charge, you have to know your credit card balance for each day of the billing cycle. While your credit card statement won’t list each day’s credit card balance, you can use your statement (or your online transaction log) to figure out the balance. Start with the balance at the beginning of the billing cycle. Then, add or subtract from the balance each day you have new transaction. Let’s say your APR is 12% and your billing cycle is 25 days long. You started the billing cycle with a balance of $100. On Day 4, you made a $100 purchase. On Day 20, a $25 payment was credited to your account. Your daily balance for each day during the billing cycle would be: Day 1 – 3: $100. Day 4 – 20: $200 ($100 purchase). Day 20 – 25: $175 ($25 credit)
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Best Visuals: Mobills. Mobills organizes your expenses in categories so you can track your spending is progressing toward your budgeted amount. See the amount you have remaining to spend in each budget category so you can rein in your spending as needed. The budget planning app includes interactive charts that allow you to analyze your financial life; you can use them to make adjustments as you need to reach your larger financial goals. Add your credit cards to the app so you can see your current balance and spending limits all in one place. You can add all your bills and due dates to keep track of when your bills need to be paid. The free version of the app has limited functionality while upgrading to the premium version will give you full access to all the app’s features.
How to Avoid a Finance Charge. Since finance charges are the credit card issuer’s way of charging you for carrying a balance, the simple way to avoid finance charges is to not carry a balance. Paying your credit card balance in full every month will prevent your credit card issuer from adding a finance charge to your balance.
Finance Charges You Can’t Avoid. You’ll typically only get a grace period when your previous balance was paid in full and you started the billing cycle with a zero balance. If you had a balance at the beginning of the billing cycle, you may not be able to avoid a finance charge. You will have to bring your balance to $0 before the grace period applies again.