(a) Adjusted balance method
We figure the finance charge on your account by
applying the periodic rate to the “adjusted balance” of your account.
We get the “adjusted balance” by taking the balance you owed at the
end of the previous billing cycle and subtracting any payments and
credits received during the present billing cycle.
(b) Previous balance method
We figure [a portion
of] the finance charge on your account by applying the periodic rate
to the amount you owe at the beginning of each billing cycle [minus
any unpaid finance charges]. We do not subtract any payments or credits
received during the billing cycle. [The amount of payments and credits
to your account this billing cycle was $
.] (c) Average daily balance method (excluding current transactions)
We figure [a portion of] the finance charge on your
account by applying the periodic rate to the “average daily balance”
of your account (excluding current transactions). To get the “average
daily balance” we take the beginning balance of your account each
day and subtract any payments or credits [and any unpaid finance charges].
We do not add in any new [purchases/advances/loans]. This gives us
the daily balance. Then, we add all the daily balances for the billing
cycle together and divide the total by the number of days in the billing
cycle. This gives us the “average daily balance.”
(d) Average daily balance method (including current transactions)
We figure [a portion of] the finance charge on your account
by applying the periodic rate to the “average daily balance” of your
account (including current transactions). To get the “average daily
balance” we take the beginning balance of your account each day, add
any new [purchases/advances/loans], and subtract any payments or credits,
[and unpaid finance charges]. This gives us the daily balance. Then,
we add up 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.”
(e) Ending balance
method
We figure [a portion of] the finance charge
on your account by applying the periodic rate to the amount you owe
at the end of each billing cycle (including new purchases and deducting
payments and credits made during the billing cycle).
(f) Daily balance method (including current transactions)
We figure [a portion of] the finance charge on your account
by applying the periodic rate to the “daily balance” of your account
for each day in the billing cycle. To get the “daily balance” we take
the beginning balance of your account each day, add any new [purchases/advances/fees],
and subtract [any unpaid finance charges and] any payments or credits.
This gives us the daily balance.
