Credit Cards 101: What is a Finance Charge?

A Finance Charge (FC) is the fee that you incur on unpaid balances and cash advance transactions posted to your account.

Sample Scenario:

Say you were only able to pay off PHP 1,736.67 minimum amount due (MAD) from your total amount due of PHP 49,619.28, the remaining balance of PHP47,882.61 will then be subjected to a finance charge, which is currently set at 3% per month, therefore adding at least PHP 1,436.48* to the total amount due of your next statement of account (SOA).

*Estimated FC amount only. Scenario assumes no cash advance transaction. Cash Advance transaction has a different FC computation. You may visit Metrobank’s website for the full T&Cs on the Finance Charge computation.

To make the most out of your credit card’s features and learn how you can avoid incurring fees, check out the articles below.

• Statement of Account
• Transaction Date vs Posting Date
• Minimum Amount Due