Conceptresidual interest
Residual Interest
A common phenomenon in revolving credit whereby a credit cardholder is still charged daily interest by the bank as long as any balance remains, even if new purchases are paid off in full within the billing cycle.
Timeline (last 90 days)
Oct 15
Residual interest is a common phenomenon in revolving credit: as long as a revolving balance has ever appeared on the card, extra days of interest may be incurred until a zero balance is maintained continuously.
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