Common use of Rewards Clause in Contracts

Rewards. Your Account may provide you with the opportunity to earn rewards. If it does, we will separately provide you with information and terms about the rewards. ANNUAL PERCENTAGE RATES & INTEREST CHARGES The following sections explain how we calculate the interest you owe each Billing Period. APRs. We use APRs to calculate interest charges on your Account. Different APRs may apply to different Transactions. See the listing of your APRs on the Pricing Information. Variable APRs. A variable APR is an APR that can change each Billing Period. We calculate each variable APR first by taking the U.S. Prime Rate from The Wall Street Journal (WSJ) on the first business day of the month. (If the WSJ doesn't publish the U.S. Prime Rate that day, then we'll use another publication). Then we add to the U.S. Prime Rate a certain percentage amount, which we call the Margin. You can find the Margin we use for your Account on the first page of this Agreement. The maximum APR for purchases, balance transfers and cash advances is 35.00%. How is a variable APR calculated? If the U.S. Prime Rate published in the WSJ on the first business day of the month is 6.00%; and if the Margin is 11.74%, then add the two together to calculate a variable APR: 6.00% + 11.74% = 17.74% Your variable APRs will increase if the U.S Prime Rate increases and decrease if the U.S. Prime Rate decreases. If a variable APR increases, then your interest charges and Minimum Payment Due may increase. If the U.S. Prime Rate changes, we'll apply the new variable APR starting on the first business day of the month when we take the U.S. Prime Rate from the WSJ. The new APR will apply to existing balances, as well as balances added to your Account after the change. Daily Balance. We calculate interest on your Account each Billing Period first by calculating your daily balances. The following explains how we do that. Here's how and when Transactions, fees and credits are applied to the balances on your Account: • We add the amount of a Purchase or Balance Transfer to the Purchase balance as of the post date on your statement. • We add the amount of a Cash Advance to the Cash Advance balance as of the post date on your statement. • We add a Balance Transfer fee to the Purchase balance as of the post date on your statement. We add a Cash Advance fee to the Cash Advance balance as of the post date on your statement. We'll add any other fees to the balance of our choice. If you're charged interest in a Billing Period, but the amount calculated is less than $0.50, we'll add additional interest to the balance(s) of our choice so that you'll be charged $0.50 in interest for that Billing Period. • We subtract credits and payments as of the post date shown on your statement. • Each balance may have a different APR. Certain categories of Transactions in a balance may have multiple APRs. For example, you may make a Purchase or Balance Transfer that's subject to a promotional APR. Your balances, and their corresponding APRs, are shown on your statement. Note: The post date shown on your statement will usually be the date of the Transaction, but it may be later. Here's how we calculate each of the daily Purchase and Cash Advance balances on your Account: • We start with the daily balance from the end of the previous day. • We add any new Transactions. • We subtract any credits or payments credited as of that day. • We make additional adjustments as appropriate, subject to applicable law (as an example, for a disputed charge). This gives us the daily balance for that day. Daily balance for purchases from the previous day + New purchases - Payments, credits and adjustments posted that day = New daily balance for Purchases Interest Calculation. Each daily balance may have a different APR. Certain categories of Transactions in a daily balance may have multiple APRs. For example, you may make a Purchase or Balance Transfer that's subject to a promotional APR. If a daily balance on your Account is subject to an APR, we'll charge interest on that daily balance. We use the average daily balance method (which includes new Transactions). If interest applies to a balance, it will start applying on the day a charge is added to that balance and continue until that balance is paid in full. We consider a credit balance as a balance of zero when calculating interest on that balance. • We multiply each daily balance by its applicable daily periodic rates (each applicable APR divided by 365). • We do this for each day in the Billing Period. This gives us the daily interest amounts. • Then we total all the daily interest amounts for all the daily balances. This gives us the total interest for the Billing Period. Note: Your balances, and their corresponding APRs, are shown on your statement. Calculating the New Balance. To calculate the New Balance at the end of each Billing Period, we begin with the total Account balance at the start of that Billing Period. Then we add any Transactions that are new to the Account during that Billing Period. Then we subtract any credits applied or payments made during that Billing Period. Then we add any interest charges or fees incurred during that Billing Period and make any other adjustments, as applicable (for example, if you have disputed a charge).

Rewards. Your Account may provide you with the opportunity to earn rewards. If it does, we will separately provide you with information and terms about the rewards. ANNUAL PERCENTAGE RATES & INTEREST CHARGES The following sections explain how we calculate the interest you owe each Billing Period. APRs. We use APRs to calculate interest charges on your Account. Different APRs may apply to different Transactions. See the listing of your APRs on the Pricing Information. Variable APRs. A variable APR is an APR that can change each Billing Period. We calculate each variable APR first by taking the U.S. Prime Rate from The Wall Street Journal (WSJ) on the first business day of the month. (If the WSJ doesn't publish the U.S. Prime Rate that day, then we'll use another publication). Then we add to the U.S. Prime Rate a certain percentage amount, which we call the Margin. You can find the Margin we use for your Account on the first page of this Agreement. The maximum APR for purchases, balance transfers and cash advances is 35.00%. How is a variable APR calculated? If the U.S. Prime Rate published in the WSJ on the first business day of the month is 6.00%; and if the Margin is 11.74%, then add the two together to calculate a variable APR: 6.00% + 11.74% = 17.74% Your variable APRs will increase if the U.S Prime Rate increases and decrease if the U.S. Prime Rate decreases. If a variable APR increases, then your interest charges and Minimum Payment Due may increase. If the U.S. Prime Rate changes, we'll apply the new variable APR starting on the first business day of the month when we take the U.S. Prime Rate from the WSJ. The new APR will apply to existing balances, as well as balances added to your Account after the change. Daily Balance. We calculate interest on your Account each Billing Period first by calculating your daily balances. The following explains how we do that. Here's how and when Transactions, fees and credits are applied to the balances on your Account: •  We add the amount of a Purchase or Balance Transfer to the Purchase balance as of the post date on your statement. •  We add the amount of a Cash Advance to the Cash Advance balance as of the post date on your statement. •  We add a Balance Transfer fee to the Purchase balance as of the post date on your statement. We add a Cash Advance fee to the Cash Advance balance as of the post date on your statement. We'll add any other fees to the balance of our choice. If you're charged interest in a Billing Period, but the amount calculated is less than $0.50, we'll add additional interest to the balance(s) of our choice so that you'll be charged $0.50 in interest for that Billing Period. •  We subtract credits and payments as of the post date shown on your statement. •  Each balance may have a different APR. Certain categories of Transactions in a balance may have multiple APRs. For example, you may make a Purchase or Balance Transfer that's subject to a promotional APR. Your balances, and their corresponding APRs, are shown on your statement. Note: The post date shown on your statement will usually be the date of the Transaction, but it may be later. Here's how we calculate each of the daily Purchase and Cash Advance balances on your Account: •  We start with the daily balance from the end of the previous day. •  We add any new Transactions, fees and other charges, including interest accrued on the previous day's balance. • This means that interest is compounded daily.  We subtract any credits or payments credited as of that day. •  We make additional adjustments as appropriate, subject to applicable law (as an example, for a disputed charge). This gives us the daily balance for that day. Daily balance for purchases from the previous day + New purchases + Xxxx and interest accrued on the previous day's Purchase balance - Payments, credits and adjustments posted that day = New daily balance for Purchases Interest Calculation. Each daily balance may have a different APR. Certain categories of Transactions in a daily balance may have multiple APRs. For example, you may make a Purchase or Balance Transfer that's subject to a promotional APR. If a daily balance on your Account is subject to an APR, we'll charge interest on that daily balance. We use the average daily balance method (which includes new Transactions). If interest applies to a balance, it will start applying on the day a charge is added to that balance and continue until that balance is paid in full. We consider a credit balance as a balance of zero when calculating interest on that balance. •  We multiply each daily balance by its applicable daily periodic rates (each applicable APR divided by 365). •  We do this for each day in the Billing Period. This gives us the daily interest amounts. •  Then we total all the daily interest amounts for all the daily balances. This gives us the total interest for the Billing Period. Note: Your balances, and their corresponding APRs, are shown on your statement. Calculating the New Balance. To calculate the New Balance at the end of each Billing Period, we begin with the total Account balance at the start of that Billing Period. Then we add any Transactions that are new to the Account during that Billing Period. Then we subtract any credits applied or payments made during that Billing Period. Then we add any interest charges or fees incurred during that Billing Period and make any other adjustments, as applicable (for example, if you have disputed a charge).