Finance Charge on a ZERO balance card.
I got an email stating I owe a finance charge. I logged into my account and all what it shows is the amount and finance charge in the description. How could a bank charge a finance charge on a credit card that has a ZERO balance? I haven’t used this card since March and it has been paid in full with a ZERO balance. I even verified it with them before leaving the bank and they said I didn’t own anything. How could they charge me a finance charge on nothing? I plan on calling them tomorrow. Has this happened to anyone. Why do they do that?
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I’d have to revisit the fine print (which I don’t have the time or inclination to do at this time) but I believe Finance charges are based on an average daily balance over some period of time. In your case, that period of time must go as far back as March when you did have a balance. You’ll have to check the fine print for your particular cc.
some credit cards charge you just for having the card.
It could be any number of things, it’s happened to me plenty of times. There’s no real way to answer your question without more information.
My guess would be that most cards have a grace period when you can pay back without getting hit with finance charges. So a purchase for one month can fall within the grace period for that month and you won’t receive a finance charge on that particular balance.
However, if you pay your card down to a zero balance before the finance charge for that purchase is calculated you will still get hit (because you missed the grace period) even though you technically have a zero balance.
I agree with these folks. Other possibility: identity thieves who payoff your card after they use it.
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