Common use of Interest Charge Clause in Contracts

Interest Charge. The INTEREST CHARGE calculation method applicable to your Account for Purchases, Cash Advances, balance Transfers, and Checks that you obtain through the use of your Account or Card is the Average Daily Balance (including new purchases) as specified on your monthly periodic statement and explained below: Purchases. To avoid incurring additional INTEREST CHARGE on the balance of purchases reflected on your periodic statement and, on any new purchases appearing on your next periodic statement, you must pay the New Balance in full shown on your monthly statement on or before the Payment Due Date. The grace period for the New Balance of purchases extends to the Payment Due Date. We calculate the INTEREST CHARGES for a billing cycle by applying the monthly Periodic Rate to the Average Daily Balance of purchases. To get the Average Daily Balance, we take the beginning balance of your account each day, add any new purchases and subtract any payments, credits, non-accruing fees, and unpaid INTEREST CHARGES. This gives us the daily balance. Then we add all the daily balances for the billing cycle and divide the total by the number of days in the billing cycle. This gives us the average daily balance.