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Average daily balance

The average daily balance is the most common method used by credit card issuers for calculating the payment due. The average daily balance is calculated by adding each day's balance (charges minus any credits), and dividing by the number of days in the billing cycle. The average daily balance is then multiplied by the card's monthly periodic rate (the APR divided by 12) to calculate the finance charge for the month.


Previous Credit Card Term: Available Credit

Next Credit Card Term: Bad Credit


* See the online credit card application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the "Apply Here" button, you can review the credit card terms and conditions on issuers website.