What Is a Finance Charge, and How Do I Avoid Paying One?
If you're savvy, you can avoid credit card finance charges entirely.
If you pay off your statement balance completely during a grace period, you could dodge interest charges altogether. (Getty Images)
Borrowing money typically costs money, and credit cards are no exception. One of the advantages of having a credit card is that you don't have to pay off your balance each month. But that perk comes at a price, called a finance charge.
Here's what you need to know about credit card finance charges, how they're calculated and what you can do to avoid them.
How Credit Card Finance Charges Work
Carrying a balance. If you don't pay your balance in full by the due date each month and there is no promotional 0% APR period, you will incur a finance charge based on your card's APR and the remaining balance.
Generally, credit cards require relatively low minimum payments compared with balances. While some credit card issuers include interest charges in the minimum payment, others just charge a flat percentage. "If this minimum is less than the accrued interest," says James Philpot, certified financial planner and associate professor in the department of finance and general business at Missouri State University, "you will effectively be borrowing more money from your card issuer in order to pay interest."
Transferring a balance. If you transfer a balance from one card to another, you may incur a finance charge in the form of a balance transfer fee. You may also pay interest on the balance unless the card has an introductory 0% APR balance transfer promotion. Check the card's terms before you submit your request.
Requesting a cash advance. If you use your credit card to get cash from an ATM, interest will start accruing immediately from the date of the transaction, with no grace period. The APR for credit card cash advances is often higher than the APR for purchases.
Making a foreign transaction. A foreign transaction on your credit card, whether in a foreign country or currency, can incur a foreign transaction fee. This fee is typically about 3 percent of the transaction.
How Credit Card Companies Calculate Finance Charges
Criminal gangs have been difficult to catch, however, because illegal meats are often hidden among other produce such as fruit and vegetables, and lorry drivers are often bribed to deny any knowledge of it.
Company: Everyone Counts
Wang Jianlin, the entertainment mogul behind a series of high-profile acquisitions in Hollywood, and internet tycoon Jack Ma retained their spots at the top of the list, with fortunes of $32.1bn and $30.6bn respectively.
Note, however, that some credit card issuers compound interest on a daily basis, so your calculation may be even more complicated than this one.
How to Avoid Paying Credit Card Finance Charges
“气候变化也许是我们这代人的重大挑战，”美国国家航空航天局(NASA)地球科学部主任迈克尔·H·弗莱利赫(Michael H. Freilich)说，他的部门是跟踪全球气温的机构之一。
The pickup in consumption in turn will entice businesses to hire and invest more to keep up with rising sales. The result: The U.S. is likely to grow more than 3% for the first time since 2005.
Take advantage of your grace period. Most credit cards offer a grace period on purchases. If your credit card has one, it typically runs from the end of your billing cycle to your payment due date. By law, you must receive your credit card bill at least 21 days before it is due.
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He was under the impression people clicking on the adverts would earn him money. But instead he was charged every time someone clicked on the link.
BEIJING: A group of Hyundai Motor Co dealers in China is seeking 800 million-900 million yuan ($120 million-135 million) in compensation from the South Korean automaker, saying Hyundai has cut the flow of models it exports to them, resulting in dealership losses and closures.
Phil Baty, editor of the rankings, said: "it seems that China's relentless march up the global league tables has stalled, after making major gains in recent years. This new data shows just how hard it is for emerging powers to break into the traditional global elite."
I empathize with the Mavs' position. It's tough to tell your fans that all hope is lost in November, and it's especially tough when you've got a Hall of Famer still on your roster.
In my country, we make so much waste, we buy and throw away, buy and throw away, and yet northern countries will not share with the needy. Even when we have more than enough, we are afraid to lose some of our wealth, afraid to share. 在我的祖国，我们制造了如此之多的垃圾，我们购买商品，我们随之丢弃，买来，再丢弃。然而有些国家，有些人，却不会分享给那些真正需要的人们，甚至他们拥有的远远超过自身需要的时候。他们害怕分享，害怕失去自己的财富。
Although Facebook is blocked in China, Tencent has linked WeChat to Facebook, which means that users outside of China can use the service in conjunction with the world's most popular social network. That is a boon for WeChat in Southeast Asian countries like Indonesia, Thailand and the Philippines, which have large numbers of Facebook users. Tencent has offered WeChat in languages for all three markets.
The regulator said that “faced with a complex and volatile market environment,” funds had realised gains of only Rmb294.5bn in the first half, a drop of 42.3 per cent.
To Frans de Waal [The Netherlands and USA] and Jennifer Pokorny [USA] for discovering that chimpanzees can recognize other chimpanzees from seeing photographs of their rear ends.
Use a 0% APR promotion. Some credit cards offer an introductory 0% APR promotion to new cardholders, waiving interest charges on purchases, balance transfers or both transactions for a set period.
Economists had forecast a 1.5 per cent annual rate, after a 1.6 per cent reading in September. Beijing's inflation target is "around 3 per cent" this year.
Growth in the key sectors driving China’s economy softened last month, according to official gauges tracking activity at manufacturing, services and construction businesses.
In this Jan. 15, 2008, file photo, Apple CEO Steve Jobs holds up the new MacBook Air after giving the keynote address at the Apple MacWorld Conference in San Francisco
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Such insights are of particular interest to litigation funders, who back claimants in return for a cut of damages and who try to assess the likely outcomes of disputes before committing their money. But that may have to be 2019’s breakthrough, or probably beyond.
Forgo certain activities. Because many cards charge fees for balance transfers, cash advances and foreign purchases, consider refraining from these activities, or try to find a card that waives these fees.
Some balance transfer credit cards, for instance, will waive the balance transfer fee for new cardholders for a short period. Also, many travel credit cards don't charge a foreign transaction fee.
Always Read the Fine Print
D'ALOISIO BEGAN designing iPhone apps nearly the moment the app store opened in 2008. He was 12 years old, working on a Mac in his bedroom in the London district of Wimbledon. Because he was too young, he signed up for the Apple developer's license using his father's name. He'd taken no formal computer science classes at school, and neither of his parents (Diana and Lou, a lawyer and a business executive, respectively) knew much about tech. Instead, he learned how to program almost entirely by himself, scouring websites and watching instructional videos.
China's pension insurance balance of urban employees and urban and rural residents added up to four trillion, according to the Annual Report on Social Security Development 2015.
“世界各地的政策制定者认识到美联储的决定将产生什么影响，为此忧心忡忡，这让我们担心，”百达资产管理公司(Pictet Asset Management)全球新兴债券部门主管Simon Lue-Fong表示。“人们在说美联储的决定已被反映到价格上，但既然没人知道究竟会发生什么，这怎么可能呢。”
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Far away from the hustle and bustle of mega cities, Michigan's Upper Peninsula is an area full of stunning natural beauty and landscapes.
美国的麻省理工斯隆管理学院(MIT Sloan School of Management)位居第五，从而阻止了法国商学院囊括前五名。