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Previous balance method

A technique for calculating Finance charges on a Credit card Account that takes the outstanding Balance at the end of the previous billing period and applies the Interest rate to that total. Charges in the current billing period are not included. Interest charges are usually higher under this method than under other methods, such as adjusted balance, and Average daily balance methods.

Related Terms: 20 Account, Average daily balance, Average daily balance method, Average, Balance, Bill, Charge, Credit card, Car, CLU, Credit, Finance, Finance charge, FIN, High, Interest, Inc., Interest rate, Outstanding, Rent
Other Related Pages: Category: Lending_and_Credit Starting With: P
Semi Related Terms: 681 CLICK HERE TO VIEW