(a) Adjusted balance method
We figure the interest 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 interest
or other finance charges and] any payments and credits received during
the present billing cycle.
(b) Previous balance
method
We figure the interest charge on your account
by applying the periodic rate to the amount you owe at the beginning
of each billing cycle. We do not subtract any payments or credits
received during the billing cycle.
(c) Average
daily balance method (excluding current transactions)
We figure the interest charge on your account by applying the periodic
rate to the “average daily balance” of your account. To get the “average
daily balance” we take the beginning balance of your account each
day and subtract [any unpaid interest or other finance charges and]
any payments or credits. We do not add in any new [purchases/ advances/fees].
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 the interest charge on
your account by applying the periodic rate to the “average daily balance”
of your account. To get the “average daily balance” we take the beginning
balance of your account each day, add any new [purchases/advances/fees],
and subtract [any unpaid interest or other finance charges and] any
payments or credits. 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 the interest charge on your account by applying
the periodic rate to the amount you owe at the end of each billing
cycle (including new [purchases/advances/fees] and deducting payments
and credits made during the billing cycle).
(f)
Daily balance method (including current transactions)
We figure the interest 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 interest or other finance charges and] any
payments or credits. This gives us the daily balance.
