A method in which credit card issuers subtract all payments made during the month, then add the finance charges.

This is usually the most advantageous method for card holders. Your balance is determined by subtracting payments or credits received during the current billing period from the balance at the end of the previous billing period. Purchases made during the billing period aren't included. This method gives you until the end of the billing cycle to pay a portion of your balance to avoid the interest charges on that amount. Some creditors exclude prior, unpaid finance charges from the previous balance.

Some credit card companies use the "adjusted balance" method for applying finance charges. This means the credit card company will subtract all of the payments made during the month and then add the finance charges to the remaining balance.

A method of calculating finance charges over a certain period based on the final balance of the account at the end of that period. · See Also · Average Daily Balance

An adjusted balance is determined by subtracting all payments made during the billing cycle from the outstanding balance at the beginning of the billing cycle, prior to the calculation and accrual of finance charges to the account.

An interest calculation method used by some credit card issuers in which they subtract all payments made during the month, then add the calculated finance charges.

A less-common method for calculating monthly interest charges which favors the cardholder more than the bank-preferred "average daily balance" method. The balance is determined by subtracting payments or credits received during the current billing period from the balance at the end of the previous billing period. Purchases for the current billing period are not factored into the calculation. This way cardholders have until the end of the billing cycle to pay off portions of their balance and avoid paying interest charges on those amounts.

the account balance that remains after adjustment is made for payments and credits posted to your account during the billing cycle. This is the account balance you can be charged interest on. It is one of 3 ways to calculate your unpaid account balance.

A balance computation method where all payments made during the billing cycle are subtracted from the outstanding balance at the beginning of the billing cycle, prior to the calculation and accrual of finance charges to the account.

You can figure out what what your adjusted balance is by subtracting payments made during your current billing cycle from the balance from the previous billing cycle. Any purchases you made during the current billing cycle are not included.