The adjusted balance is how credit card issuers determine how much interest you owe on your credit card balance after factoring in payments, charges and credits. Adjusted balance gives cardholders ...

Finance and credit card companies set the periodic rate of interest by dividing the annual percentage rate by a period of time. They apply the periodic rate to your outstanding balance to calculate ...

Add-on interest method: A method of computing interest in which interest is calculated on the full amount of the original principal. Adjusted balance method: The assessment of finance charges after ...

An average daily balance method is one way a credit card issuer calculates the finance charge on your credit card. When we say finance charge, this pertains to how your credit card issuer imposes ...