How can I have accrued finance charges on a credit card balance under a deferred int promotion?
I recently opened a Sears MC account under a deferred interest/no payment offer until May 2001. The purchase was exactly $1000(and therefore the statement balance). The first statement indicates an average daily balance of $1007.71 in the "deferred int no pmts" row of the statement (corresponding APR of 22.40%...daily periodic rate of 0.0614%...26 days in billing period).
There is also $16.08 under the accrued interest charges column in the "promotional balances" section of the statement. I am assuming this is the interest on the running meter for the balance that will be charged to me if I do not pay the balance by the expiration date, but I was just wondering how the ADB was calculated.
I messaged the credit card company for an explanation, but who knows when I'll actually get a reply. Just though I might get a simpler explanation here that I might be able to digest.