(a) Adjusted balance method
We figure [a portion of] 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 unpaid finance charges and] 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.
