# CC | Finance Charge

Member PExer
edited March 14
Guys ask ko lang po kung ano ang rough estimate ninyo sa magiging Finance Charge ko for my next billing, provided I dont make a single purchase.
Here are the details
Total Outsanding Balance for April 6, 2010  0
Total Outstanding Balance as of May 6  P 31,000 Minimum Pay  P330.00
I payed P1000- last May 8,2010
Finance Rate 3.5%
How much po ang magiging Finance Charge ko for June 6,2010, no plans of purchasing anything for this month.

Will it be 3.5% of 30,000? Or isasama pa nila yung nilakaran ng April 7 to May 5 and add another 3.5% for the 31,000. Kasi po yung P31K purchased was made nuong after the billing which is April 7, 2010.

Additional Info- Duon po kasi sa other card ko, aside from being billed 3.5% for one month, nag compute pa sila ng isang month pa, like yung April 7 to May 6 na nagdaan.

• Member PExer
Ito po ang details
Outstanding Balance 36,169 + Purchases P 9,660.61= P45,829 total purchases
Now ang finance charge ko is P2.300.00. Tama ba yon?
Hindi ba 3.5% of P45,829 is P1,6040. Why charge me P2,300.00
One more thing I forgot I payed P24,000.00 during this statement. Pero kunyari hindi ako nagbayad ng P24K, diba dapat P1.6k lang ang finance charge ko? Please help and enlighten me.

Now kung isasama natin ang payments ko P45,829-24,000= 21,829 x 3.5% is P764.00 More or less lang yan kasi nga average daily balance yan in the sense that the earlier you pay mas lower ang FC and the earlier you purchase mas tataas ang FC mo considered na revolver ka.
• Moderator PEx Moderator
Ask your customer service. Some issuers compute finance charges on unpaid balances from the date of purchase and not from the date the amount was due.
• Member PExer
jay372011 wrote: »
Ito po ang details
Outstanding Balance 36,169 + Purchases P 9,660.61= P45,829 total purchases
Now ang finance charge ko is P2.300.00. Tama ba yon?
Hindi ba 3.5% of P45,829 is P1,6040. Why charge me P2,300.00
One more thing I forgot I payed P24,000.00 during this statement. Pero kunyari hindi ako nagbayad ng P24K, diba dapat P1.6k lang ang finance charge ko? Please help and enlighten me.

Now kung isasama natin ang payments ko P45,829-24,000= 21,829 x 3.5% is P764.00 More or less lang yan kasi nga average daily balance yan in the sense that the earlier you pay mas lower ang FC and the earlier you purchase mas tataas ang FC mo considered na revolver ka.

ano card issuer mo?? grabe nmn yun.. kuya danny i have watched sa youtube and read sa mga article na sa US depende sa FICO score ang APR sana ganun din dito... at walang annual fee
• Moderator PEx Moderator
Hindi ganun dito at matagal pa magiging ganun dito. Lalo na ngayon sinisisi nila ang financial crisis sa pagpapautang sa US (at ibang bansa) na kulang sa higpit.
• Member PExer
Alam ninyo po kahit pag balig baligtarin ang computation, deceiving yang 3.5% finance charge nila. Kasi nga po sa 46,000 at 3.5% is P1,610.00. Eh pano pa yung payments ko diba. Kaya they will get back to me DAW. Kasi nga hindi nila ma explain.

Simple lang naman - nangutang ako ng 46K they charge me 5% and not 3.5%. And what happens to my payments, ang laki laki yata nuon.

Sana lang po eyeopener ito. I have not experienced this before as a revolver. Ngayon pa lang. Hope you guys check on your finance charges too. :bashful:
• the truth hurts, does it? ✭✭✭
basahin ninyo yung terms and conditions ng credit card ninyo at yung mga nakasulat sa likod ng inyong statement.

nakasulat doon kung papaano kino-compute ng finance charge.
• Member PExer
Can somebody make an honest to goodness try to work on the computation based on the post #1? Kahit trial lang?

Kasi dito sa opisina lahat ng may credit card pinasubok ko na e. Wala talaga may alam, how they come up with that FC. Pina trial computation ko sa kanila na bihasa na din talaga sa mga FC na yan. Try ninyo lang guys please.

Lahat kasi dito na cardholder ay kampi sa akin. Huwag ninyo ng isama ang P24,000 payments ko. Lets see.
• Moderator PEx Moderator
If they are computing based on your purchase dates, we will need more information from you. You will also need to know if and how they compound the finance charges when you don't pay in full.
• Member PExer
Outstanding balance - P36,000 Aug 12
Payments (7000) Aug13
Payments (9200) Aug18
Purchases 8,600 Aug 27
Payments (7000) Sept 9
Purchases 1,000 Sept 10

Previous balance 36K, Purchases 9.6K Payments 23k

FINANCE CHARGE 2.3K:grrr: Late Charge- O Total Amt Due P24.9K

Yan po Kuya Danny- try mo nga? :bashful: Try charging me na hindi kasama ang payments ko, then make another na considering my payments.
• Moderator PEx Moderator
I need to know your purchases BEFORE August 12 (kung paano umabot ng P36,000).

This is the point I have been trying to make about calculating the finance charge from the date of orginal purchase. Kung ang balance mo noong AUgust 12 ay P36,000 at hindi buo ang bayad mo sa sumunod na due date, hindi sa August 12 ang simula ng bilang ng finance charge, kundi sa date na nag-charge ka (before August 12). May mga issuer na ganito ang basis mag-compute kaya kailangan mong malaman kung paano.
• Member PExer
Ok so you mean from aug13 to sep11 itong statement, and then may charges pa from the the last billing? july12 to aug 12? Diba forwarded na yon to this billing which is sept12. Hindi ba kaya nga its called Balance Forwarded? Hindi ba dapat ang reference should be a. Balance Forwarded b. Purchases c. Payments. Why do they charge me for the past month when they can just incorporate it duon sa balance forwarded diba? So merong hidden something....

So ayun pala may hidden charges pala na parang ghost of the past na akala mo settled na yung month na yon? Wow! Akala ko exclusive lang ito for this respective month. Yung dati pala sinasama pa?

Lesson - madaya ang CITIBANK ayan na! Revolver ako sa ibang credit cards. Wala akong reklamo because they stick to the current month at hindi na sinasama pa yung nakalipas na. Their computation i understand kasi walang hidden charges na very deceiving.
• Moderator PEx Moderator
That's right. Normally walang finance charge kung babayaran mo lahat. Pero oras na maging revolver ka, yung date of purchase ang basehan ng finance charge, kahit ilang buwan na ang nakalipas.

Hindi lahat ng issuer ganito mag-compute, pero baka yung sa iyo ganon.
• Moderator PEx Moderator
I think it is good to be aware of the different dates which can be used as a basis for computation of charges:

Date of Purchase/Transaction -> Date of Posting -> Date of Statement/Cutoff -> Date Due -> Date of Payment
• Member ✭✭✭
• Member PExer
Nakausap ko na po ito po ang computation nila more or less ito po ang explanation.

Tama si Kuya Danny aside from the P36k na outstanding balance. Sinama pa nila ang last month na hindi mo naman makikita sa statement kasi nga syempre ang focus mo is yung billing on the current month. All this time when we talk about the computation i focus on Previous balance. Yon pala meron pang charges ng last month. Thanks a lot Po!:)

Anyway, I am sticking with my old credit cards.:) GOODBYE CITIBANK! GOOD RIDDANCE!!!!!*peace*
• Member PExer
your issuer might be using the average daily balance method in computing your finance charge.

there are no hidden or deceiving charges when it comes to your finance charge. your finance charge is computed by the bank's system based solely on your transactions depending on what kind of computation they use.

the best ways to understand how issuers compute your finance charge are to (1) read the terms and conditions, (2) have a customer service agent explain it to you and (3) have your finance charge computation sent to you via fax, e-mail or your billing address.;)
• Member PExer
Medyo OT pero in the same vein as the original post:

Okay, I am deep in credit card debt right now. I owe 85K and I pay about 6,500 a month. The finance charge sits at more than 3,000 a month. Wala ako nakikita extra income in the months to come unless magresign ako at maghanap ng mas malaking kita o kaya manalo sa lotto.

One way to lower it is not to use the card and to pay way higher than the monthly due pero wala talaga ako pera pa. So I asked my sister to help me out by asking her to use my credit card when she purchases an LCD next week.

You are welcome to criticize me guys because I am also planning to buy a 5800 next week as well. Pasesnya na at three years old na yung gasgas na cellphone ko.

These two will be under 12 months 0% payment scheme.

I will pay my bank the equivalent price of these two gadgets in the next few days.

The question is: am I doing the right thing? I need to have the interest lowered but this is the only way I could do this. Will the finance charge that now sits at 3,000+ be considerably lower?

The LCD will cost 28K and 5800 15K, so that makes 43K deducted from my balance. I am thinking that since the balance will be almost halved, the interest will follow.

My estimate is I will pay just 7K monthly if I make this move.

And I promise not to use that dang card when I do not need to use it. :-)
• Member PExer
Medyo OT pero in the same vein as the original post:

Okay, I am deep in credit card debt right now. I owe 85K and I pay about 6,500 a month. The finance charge sits at more than 3,000 a month. Wala ako nakikita extra income in the months to come unless magresign ako at maghanap ng mas malaking kita o kaya manalo sa lotto.

One way to lower it is not to use the card and to pay way higher than the monthly due pero wala talaga ako pera pa. So I asked my sister to help me out by asking her to use my credit card when she purchases an LCD next week.

You are welcome to criticize me guys because I am also planning to buy a 5800 next week as well. Pasesnya na at three years old na yung gasgas na cellphone ko.

These two will be under 12 months 0% payment scheme.

I will pay my bank the equivalent price of these two gadgets in the next few days.

The question is: am I doing the right thing? I need to have the interest lowered but this is the only way I could do this. Will the finance charge that now sits at 3,000+ be considerably lower?

The LCD will cost 28K and 5800 15K, so that makes 43K deducted from my balance. I am thinking that since the balance will be almost halved, the interest will follow.

My estimate is I will pay just 7K monthly if I make this move.

And I promise not to use that dang card when I do not need to use it. :-)
Its a suicide attempt if you still use it because banks include nee purchases with their finance charge computation. You will not get out of debt if you continue using it.
• Member PExer
@idiot_savant if you want to get out of the hole you are into, you got to be serious about it. The way I see it you are not.

"Wala ako nakikita extra income in the months to come unless magresign ako at maghanap ng mas malaking kita o kaya manalo sa lotto."

--- wala kang extra income pero may pamibili ka ng bagong phone? Im sure working pa naman yung phone mo eh. You better use that 15k to pay the portion of your debt outright. Anyway, December is coming, and you are employed, so I'm sure you have 13th month pay, yun na lang gamitin mo pambili ng phone (but even then, I suggest you hold that purchase to and use it to pay your debt, Christmas gift mo na lang sarili mo na that you are debt free or your debt will be significantly less).

Now, the LCD TV purchase, if your card is not BPI, then even the monthly amortization will have interest (it will be really 0% if you don't have revolving balance, except if the card is BPI).

"And I promise not to use that dang card when I do not need to use it. :-)"

--- Start now. Your phone is still working. Pagtyagaan mo muna. Use the 15k you have to pay your CC balance and don't use the card to purchase a phone.

If my posting came up strong, please note that i don't mean any offense to you.
• Regular Pexer ✭✭
Medyo OT pero in the same vein as the original post:

Okay, I am deep in credit card debt right now. I owe 85K and I pay about 6,500 a month. The finance charge sits at more than 3,000 a month. Wala ako nakikita extra income in the months to come unless magresign ako at maghanap ng mas malaking kita o kaya manalo sa lotto.

One way to lower it is not to use the card and to pay way higher than the monthly due pero wala talaga ako pera pa. So I asked my sister to help me out by asking her to use my credit card when she purchases an LCD next week.

You are welcome to criticize me guys because I am also planning to buy a 5800 next week as well. Pasesnya na at three years old na yung gasgas na cellphone ko.

These two will be under 12 months 0% payment scheme.

I will pay my bank the equivalent price of these two gadgets in the next few days.

The question is: am I doing the right thing? I need to have the interest lowered but this is the only way I could do this. Will the finance charge that now sits at 3,000+ be considerably lower?

The LCD will cost 28K and 5800 15K, so that makes 43K deducted from my balance. I am thinking that since the balance will be almost halved, the interest will follow.

My estimate is I will pay just 7K monthly if I make this move.

And I promise not to use that dang card when I do not need to use it. :-)

a) Magmakaawa ka na medyo bawasan yung finance charges mo.
b) Tiisin mo muna wag bumili ng phone. Ako nga ginagamit ko pa yung nokia 5210 na binili ko pa nung 2003 worth 11k pa noon hehe. Halos pareho lang naman ang features, eh kasi naman yung advanced features ng phone hindi naman nagagamit sa pinas hehe.
c)