Interest, What does this mean?

United States
February 6, 2011 8:57am CST
Your due date is at least 25 days after the close of each billing cycle. We will not charge you interest on new purchases, provided you have paid your previous balance in full by the due date each month. We will begin charging interest on cash advances on the transaction date. Does it mean as long as I keep paying the full balance on the credit card each month there will be no interest?
1 response
ptower76
@ptower76 (1616)
• United States
6 Feb 11
That is what it means. If you use your credit card, you have one month to pay without incurring interest charges. I believe there will be finance charges. So pay your full balance before the due date and you'll be ok.
dorthakay08
@dorthakay08 (68)
• United States
6 Feb 11
What are finance charges?
ptower76
@ptower76 (1616)
• United States
7 Feb 11
One way credit card companies and banks make a profit is by charging customers for the privilege of borrowing their money. Any additional fee added to the original amount of a loan can be called a finance charge. This definition of finance charge includes the interest added to the balance, service fees for transactions, late fees, and balance transfer fees.