Compensation may impact the order in which offers appear on page, but our editorial opinions and ratings are not influenced by compensation. Please help us continue to provide you with our trusted how-to guides and videos for free by whitelisting wikiHow on your ad blocker. OPENING BALANCE “Cardmember Agreement Rates and Fees Table,” Page 5. But with so many cards out there, you need to choose wisely. The finance charge would be the 1.5% of the average daily balance. You'll typically only get a grace period when your previous balance was paid in full and you started the billing cycle with a zero balance. Most credit cards' grace periods are between 21 and 25 days, and you should be able to easily locate yours on your billing statement. Finally, this rate is multiplied by the amount of debt that is subject to your APR.
Please note, that depending on the method your bank uses you may need to calculate new purchases into your outstanding balance and not just go off of whatever's written on your bill. With competition in the credit card industry at an all-time high, these offers are evolving quite rapidly, so be sure to check out the latest and best 0% intro APR offers. But, the convenience of paying over time may come at a cost. We are committed to full transparency in our mission to make the world smarter, happier, & richer. Add up the outstanding balance for each day in your billing period.

Credit cards allow you to make purchases today and pay for them later. If you really can’t stand to see another ad again, then please consider supporting our work with a contribution to wikiHow. Please read our Privacy Statement and Terms & Conditions. credit cards offer a zero percent introductory interest rate, Cardmember Agreement Rates and Fees Table. A finance charges is the total cost of borrowing, including interest, fees, and any other charges the borrower pays. "Credit, Debit, and Charge Cards." Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The outstanding balance represents what you owe. There are also some 0% intro APR offers specifically geared toward balance transfers, if you have an existing credit card debt that you'd like to avoid finance charges on. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/9\/9d\/Calculate-the-Finance-Charge-on-a-Credit-Card-Balance-Step-1-Version-2.jpg\/v4-460px-Calculate-the-Finance-Charge-on-a-Credit-Card-Balance-Step-1-Version-2.jpg","bigUrl":"\/images\/thumb\/9\/9d\/Calculate-the-Finance-Charge-on-a-Credit-Card-Balance-Step-1-Version-2.jpg\/aid1117640-v4-728px-Calculate-the-Finance-Charge-on-a-Credit-Card-Balance-Step-1-Version-2.jpg","smallWidth":460,"smallHeight":345,"bigWidth":"728","bigHeight":"546","licensing":"