(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.
