The past due balance method used by credit card companies allows borrowers a grace period to avoid interest. Discover its benefits and risks.

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Toby Walters is a financial writer, investor, and lifelong learner.

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 ...

The average daily balance method is one of several methods used by credit card companies to calculate interest when a cardholder carries a balance. Cardholders too can use the formula as a way to ...