Question

Which method of calculating finance charge results in the lowest finance charge?

Answer 1

The correct answer is called the Adjusted balance.

Explanation:

The adjusted balance refers to the method that begins with the balance at the start of the billing cycle and minus any payments you made during the billing cycle.

Purchases are not added in the balance. In all the ways to calculate finance charges, this method gives in the lowest finance charge, but not very many credit card issuers make use of it.

Answer 2

For the answer to the question above asking which method of calculating finance charge results in the lowest finance charge?

I think the answer would be adjusted balance.
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