What is an Average Daily Balance?
The average daily balance on a credit card is how much you owe daily, on average, over a billing cycle. Credit card companies use this average to determine the amount of interest you pay if you carry a balance from month to month. A billing cycle is the period between the last statement’s closing date and the next. For credit cards, this is usually about one month. During this time, the issuer records and adds all of the transactions you make with your credit card to your... read more »