Unfortunately, you may not be able to avoid finance charges on all types of balances. Balance transfers and cash advances don’t have a grace period, so finance charges start accruing as soon as the balance hits your card. When it comes to these types of balances, the best way to avoid a finance charge is to stay away from those transactions completely. The exception is when your credit card has a zero percent interest rate promotion, but these rarely apply to cash advances.
Balances With Different APRs. If you have balances with different APRs on your credit card, the finance charge for these balances is calculated separately. For example, you’ll have a finance charge for purchases, one for balance transfers, and one for cash advances if you had all these balances on your credit card. So, if you’re calculating your own finance charge, you will have to calculate the average daily balance separately for each.
#academy mortgage corporation#liberty mortgage#financial business#mortgage investors group#best mortgage companies#cit lending#global equity finance#green tree servicing#entrepreneur loan#cornerstone mortgage company#specialized loan servicing#guaranteed rate#cit loan#capital mortgage funding#summit mortgage#new century mortgage corporation#business finance#first direct mortgagesrating
How Much Is the Finance Charge? Finance charges are calculated each billing cycle based on your APR and credit card balance, so your exact finance charge will typically vary from month to month. Creditors have different methods of calculating finance charges based on how they calculate your balance. Credit card issuers may calculate your finance charge using your daily balance, an average of your daily balance, the balance at the beginning or end of the month, or your balance after payments have been applied. It’s now illegal for credit card issuers to charge a new finance charge on a balance you paid off in a previous billing cycle.
How Promotional Rates Affect Finance Charges. Some credit cards offer a zero percent introductory interest rate to entice new customers who want to avoid interest. During the promotional period, you generally won’t receive a finance charge even if you don’t pay your balance in full. However, once the promotional period ends, any remaining balance will start accruing finance charges at the regular APR. During the promotional period, you can also be assessed a finance charge on balances that aren’t subject to the promotional rate. For example, if the promotional rate applies only to balance transfers, then purchases you make will be charged a finance charge.
Depending on what you expect from your personal finance software, AceMoney can take the place of Quicken, Microsoft Money, and other titles. What’s missing in AceMoney is the ability to download transactions from all major financial institutions and online bill pay. The investment reporting could be stronger, but the multiple currency support is good. Another strong point is the online user community that’s available for getting help, although the help feature in the software explains how to use all features quite well.