Credit card “finance charge”?

Emily K: Credit card “finance charge”?
I have a credit card that doesn’t charge interest if the balance is kept under $ 250. I’ve never really charged more than that except this past January.

In January I charged around $ 1300 to my credit card. The bill came and I paid it down so that my balance was under the $ 250. But I just got my next bill, and they charged me a $ 13.50 finance charge. It says it’s calculated from my average daily balance which of course was over $ 250 while I had that $ 1300 charged to my card, and they charged interest on that. But I thought you can charge whatever you want to your credit card, and if you pay it off by time the bill is due, you don’t have to pay any interest? Was I wrong? Is this how regular credit cards work too? (Mine is a “first-time” credit card that I got when I started college.)

Thanks for any advice!

Answers and Views:

Answer by ken s
You only avoid interest if you pay if off, that means completely. You said you paid it down, but not off. All cards work this way.

Your card is special if it gives your free interest for small balances under $ 250.

Another thing to be cautious of is the cash advance finance charge. If you use your card for cash, you are charged interest from day one until it is paid in full, no exceptions.