Does anybody know how Average Daily Balance works, as far as calculating interest? I'll tell you why.
I'm looking at my Best Buy cards, the ones that I'm working to pay off before we get charged any interest on the purchases. Today, I happened to notice where they are calculating the interest on the credit card site itself, not the pdf format of my statement.
Basically, it looks like they're still assessing interest based on the original purchase price and not the current balance. For example, one purchase currently has an outstanding balance of $1946.91. On the website, the average daily balance for this purchase is showing as $2878.31 for this same purchase. All of the purchases are like that; one balance on the statement, another on the website, and the statement itself doesn't show the average daily balance being used to calculate interest. Is this right? Is it normal for there to be a nearly $1000 difference between the balance on a purchase and the average daily balance for interest calculations?
If they're assessing the accrued interest based on inflated numbers, we'll definitely be sure not to pay Best Buy any interest.
Anyway, all of our balances went up this month, except for Best Buy. Our anniversary ended up costing us nearly $200 between dinner, movie, popcorn, etc. I also have a collection agency contacting me about a medical bill from four years ago. I'm going to see if the hospital can call it back from the collection agency so I can use my Health Savings Card. I don't think I'll be able to use my card for a collection agency. I fully intend to pay it, I just have to figure out how.
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