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Glossary: General Terms
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- Adjusted Daily Balance
- A method of calculating credit card finance charges. Usually the most advantages method for the card holder. To calculate: Use month-end balance from previous statement, add purchases, subtract payments, multiply this amount by the monthly interest rate (one-12th of the annual rate).
- Earned Rate
- Refers to the rate you've earned based on your credit score. If you improve your credit score, you can request a review of your loan rate.
- Prime Rate
- The prime rate is the rate charged by major banks to their most credit-worthy customers (usually the most prominent and stable business customers).
