# How is the finance charge figured on Guest Rewards Charge



## Larry H. (Oct 10, 2007)

Hi,

Been interested in the Guest Rewards Credit Card.. My mom went ahead and got one which came yesterday.. Does anyone understand how the finance charge is handled.. It appears to say on a daily basis. Does that mean you pay a finance fee even if you pay the card off. If thats the case I think hers is about to go back?

Say that is the case.. What would a 200.00 balance cost you if you paid it off. If so is that worth it?

Larry


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## PRR 60 (Oct 10, 2007)

Larry H. said:


> Hi,
> Been interested in the Guest Rewards Credit Card.. My mom went ahead and got one which came yesterday.. Does anyone understand how the finance charge is handled.. It appears to say on a daily basis. Does that mean you pay a finance fee even if you pay the card off. If thats the case I think hers is about to go back?
> 
> Say that is the case.. What would a 200.00 balance cost you if you paid it off. If so is that worth it?
> ...


If you pay your balance in full on or before the stated payment date, there is no finance charge. The finance charge starts as soon as you carry a balance from one billing cycle to the next and continues until you pay in full. So, with your example, if you charge $200, get a bill for the $200, and then pay the $200 before the due date, the finance charge is zero. But if you pay $50 and carry $150 to the next month, then finance charges kick in.

One exception is a cash advance. If you use the card at an ATM or you use a "convenience check" to get cash or buy something with the check, then finance charges for that cash advance accrue immediately.


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## Larry H. (Oct 10, 2007)

Thanks for the reply, I feel better now.. I will inform her and we will both begin building some points soon.


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## Anthony (Oct 11, 2007)

Wow, 17.24%. The MBNA Amtrak card was fixed at 7.9%, as are the grandfathered and converted AGR card accounts that BofA now controls...


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## sechs (Oct 12, 2007)

My card was never at 7.9%, and BofA has notified that rates will be going up next year....


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## Anthony (Oct 13, 2007)

Okay, I guess it depends on the account. If I remember correctly, there were two Amtrak rates - 7.9 and 9.9 (right?)


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## sechs (Oct 15, 2007)

I can't recall exactly, but I think it was more like 9.9 and 12.9%.

I've only carried a balance on that card once or twice, so I don't really know what the interest rate is anyway....


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