Tragic, however it is legal as it is all in the fine print that they hope you never read. Try this fun little activity:
Find out how your finance charge is calculated on your favorite credit card. Generally the finance charge is the interest on the balance you carry on your card. Note: This has nothing to do with the annual percentage rate. The finance charge is calculated with what is known as the “periodic” rate. A finance charge is charged and added to your balance each time the “period” of the periodic rate cycles.
So, question 1: How often does periodic rate on your favorite credit card cycle? Question 2: Do you have just a periodic rate or do you also have a daily periodic rate on your favorite credit card?
Where do you find this information? All those tiny folded pamphlets that come with your monthly statement (that you never read and promptly throw out with the envelope and magazine subscription ads).
Periodi rate cycles by credit card company:
BofA: (Varies) Every 21 days, 15 days, and some are every 24 hours
Capital One: Every 15 days
Chase: Every 10 days
Citi: Every 7 days
