Credit Card Dilemma

Before, I was too enthusiast to have a credit card yet to hesitant to used it. Then after sometime, more cards were accumulated and my expenses grows bigger and bigger and bigger. Though I didn't experienced yet to be charge for not paying (Finance and Interest Charge).

But, last April, I called RCBC to inquire on how they will compute finance charge cause during that moment, I cannot pay the whole statement. I asked the CSR to helped me compute if I will have a remaining balance of 1,000.00

To share to everyone, here's how RCBC compute their finance charge

First : Your total Due balance be multiplied to a percent factor for finance charge interest (3.5% in case of
           RCBC)

Second : You then compute EACH of the Transaction during the covered period.

           Example : Your cut-ff is every 14th of the Month and Due Date is every 3rd of the succeeding month
                             a) count the number of days from the date of transaction (not the posting date) and the
                                  cut-off date for the period.
                             b) the days from (a) be divided to how many days in a month covered
                             c) multiplied by the finance charge interest (3.5% in case of RCBC)
                             d) multiplied again to amount of transaction
                             e) do this in EACH and EVERY transaction made

Third : You then compute EACH of your payment made for the entire period (before due date)

          Example: Since your cut-off is every 3rd of the Month, all payments made before cut-off will be counted.
                          a) Subtract you Total due and your first payment
                          b) Count the number of days between your Payment and Cut-off
                          c) the days from (b) be divided to how many days in a month covered
                          d) multiply (a) and (c) and the finance charge interest (3.5% in case of RCBC)


ADD ALL THREE. and that's the total Finance Charge to be reflected on your next billing!

with that, I decided to pay the remaining balance of 1,000.00 instead.