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The daily balance finance charge

When you do your credit card comparisons, watch out for credit cards that calculate finance charges based on a daily balance. The daily balance method is to charge interest based on the amount that is owed to the account each day. Although this can be good for some people who pay off their credit cards early in the billing period, it can be expensive for those who carry a balance. Look for a credit card that uses another method to calculate finance charges.

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