CAN I AVOID A FINANCE CHARGE ON SOME FORMS
OF CREDIT?
Yes. Many credit cards enable you
to pay the entire outstanding credit amount
within a certain time period without incurring
any finance charge. By paying off your credit
balance within the grace period, you receive
what amounts to an interest-free loan. The
creditor still makes money by charging the
seller (such as a department store or other
retailer) a fee to process their credit card
transactions, so the lenders collect from
the retailer an amount that covers their costs
of these short term loans. |
