A technique for calculating finance charges on a credit card account that takes the outstanding balance at the end of the previous billing period and applies the interest rate to that total. Charges in the current billing period are not included. Interest charges are usually higher under this method than under other methods, such as adjusted balance, and average daily balance methods.
Related information about previous balance method:
- Previous Balance Method Definition | Investopedia
A credit card accounting method where interest charges are based on the amount owed at the end of the beginning of the billing cycle. The previous balance ...
- Previous Balance Method - Previous Balance Finance Charge ...
The previous balance method of calculating your finance charge uses the balance at the beginning of your billing cycle.
- What is previous balance method? definition and meaning
Definition of previous balance method: A technique for calculating finance charges on a credit card account that takes the outstanding balance at the end of the ...
- Previous Balance Method - Financial Dictionary - The Free Dictionary
Previous balance method. Method of calculating finance charges based on the account balance at the end of the previous month. Previous Balance Method ...
- Previous Balance Method: Definition from Answers.com
method of charging credit card interest that uses the outstanding balance at the end of the previous month as the basis for the current months interest.
- Previous balance method Definition - NASDAQ.com
Previous balance method: read the definition of Previous balance method and 8000+ other financial and investing terms in the NASDAQ.com Financial ...
- Methods of Calculating Credit Card Interest - Financial Fitness For ...
Apr 18, 2011 ... Previous balance method interest calculation = $600 x 30 x .0004931 = $8.88. 2. Adjusted Balance Method: You would be charged $2.96.
- What Is the Previous Balance Method?
The previous balance method is used in finance and accounting to calculate costs and interest based on the amount owed from the previous billing cycle.