The adjusted balance is how credit card issuers determine how much interest you owe on your credit card balance after factoring in payments, charges and credits. Adjusted balance gives cardholders ...

Finance and credit card companies set the periodic rate of interest by dividing the annual percentage rate by a period of time. They apply the periodic rate to your outstanding balance to calculate ...

The adjusted balance method typically yields the lowest finance charge and is therefore the most favorable method for borrowers. The average daily balance method typically yields the highest finance ...

Add-on interest method: A method of computing interest in which interest is calculated on the full amount of the original principal. Adjusted balance method: The assessment of finance charges after ...