Common use of Rate of Finance Charge on Cash Advances Clause in Contracts

Rate of Finance Charge on Cash Advances. With respect to all Cash Advances: (1) Preferred Pricing. The daily periodic rate we use to compute the FINANCE CHARGE on all Cash Advances is a variable rate which is 1/365th of the sum of the Prime Rate plus the Preferred Pricing spread rate for Cash Advances, which was previously disclosed on the card carrier. The corresponding ANNUAL PERCENTAGE RATE of the FINANCE CHARGE is the Prime Rate plus the Preferred Pricing spread rate for Cash Advances. (2)