Terms and Conditions
What is a minimum finance charge?
Some credit cards have a minimum finance charge. You’ll be charged the minimum amount even if the actual amount of your finance charge should be less. For example, suppose you miss a payment of $5 and your finance charge should be around 1˘. Since the company’s minimum finance charge is $1.00, you’ll have to pay the minimum - $1.00. That’s 99˘ out of your pocket! A minimum finance charge only kicks in when you actually must pay a finance charge. If your finance charge is zero, then the minimum does not apply.
Finance charges must be listed on your monthly statements as the total dollar amount you must pay for the use of the card. Remember, you can avoid finance charges altogether by paying your balance in full every month.
See also:
What are the finance charges? How are they calculated?
What is a grace period?
Last update: 2006-09-27 10:31
Author: BKO
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