Common use of When Interest Begins to Accrue Clause in Contracts

When Interest Begins to Accrue. Interest charges on purchases and cash advances will be imposed at the applicable Daily Periodic Rate from the date each purchase or cash advance is made and will continue to accrue on unpaid balances as long as they remain unpaid subject to any applicable Grace Period. No interest charge on purchases or cash advances will be imposed for any billing cycle in which the previous balance is zero or a credit balance or is received in full by the payment due date shown on the statement for the previous billing cycle. Finance Charge Calculation: *Method E - Average Daily Balance (excluding current transactions): To avoid incurring an additional finance charge on the outstanding balance reflected on your statement, you must pay the new balance shown on your statement on or before the payment due date or within the applicable Grace Period. The Finance Charges for a billing cycle are computed by applying the Daily Periodic Rate to the “average daily balance” of purchases (and if applicable, cash advances). To get the average daily balance, we take the beginning balance of your account each day and subtract any payments, credits, non-accruing fees, and unpaid finance charges. We do not add in any new purchases or cash advances. This gives us the daily balance. Then we add up all the daily balances for the billing cycle and divide the total by the number of days in the billing cycle. Your current cycle activity is excluded from the finance charge calculation. One and two billing cycles ago are included in the balances. The Holder may avoid additional Interest Charges on an account by paying in full the New Balance shown on the account’s statement by the payment due date or within the applicable Grace Period after the Closing Date for that statement.