Understanding your account FAQs
Frequently Asked Questions
What is the definition of annual percentage rate (Purchase APR)?
The annual percentage rate (APR), indicated in your cardmember agreement, is the rate of interest charged to your account annually for purchase transactions. It may also be referred to as the Purchase APR. Your APR is important for calculating the amount of interest charges assessed on the outstanding purchase balance on your account.
Different interest rates may be assessed to your account depending on the type of transaction made. For example, the rate assessed on a cash advance (Cash Advance APR) is often higher than the rate assessed for purchase transactions. Check your cardmember agreement for details specific to your account.
What are interest charges?
Interest charges refer to one type of finance charges, which accrue on an account as a result of revolving a balance that is subject to an interest rate. In essence, interest charges is the amount assessed for allowing you to pay a portion of the balance, rather than pay the account in full immediately.
Different interest rates may be assessed to your account depending on the type of transactions made. Some interest charges may begin to accumulate on the day of a transaction, if that type of transaction doesn't have an interest free period. For example, cash advances don't have an interest free period and the rate assessed on a cash advance is often higher than the rate assessed for purchase transactions. Check your cardmember agreement for details specific to your account.
How do I avoid interest charges on purchases?
You pay no interest charges on purchases if you pay your “New Balance” as shown on your statement every month by the due date and time.
You pay interest on purchases if you:
- Don't pay your entire balance in full every month, or
- Are in your interest-free period, but you make only a partial payment.
If you make $1,000 in new purchases, but make a partial payment of only $700 by the due date and time, you don't pay interest charges on the $700, but you do pay interest on the remaining $300. This occurs because you only avoid interest charges when you pay your entire balance in full by the due date and time.
Balance Transfers, Checks, Cash Advances and Overdraft Advances don't have an interest-free period. This means that you pay interest from the date of these transactions until they're fully paid.
If you have any balance on your account (including 0% APR balance transfers) that you don't pay off in full, you'll lose your interest-free period on new purchases and you'll be charged interest on new purchases.
You transfer a balance or write a check for $600 at a 0% APR for 12 months. Then you make $300 in new purchases which brings your total balance to $900. In this example:
- You would be charged interest on your new purchases ($300) if you don't pay the entire balance of $900 by the due date and time.
- You would NOT be charged interest on your $600 0% APR Balance Transfer for the 12 month offer period.
What is a balance transfer?
A balance transfer moves some or all of the amount you owe from one credit card to another, often to take advantage of a lower annual percentage rate (APR) or other promotional offer. Chase doesn't permit balance transfers from one Chase credit card to another Chase credit card.
Balance transfer credit cards from Chase can help you save on interest by consolidating your higher interest rate credit card balances with other financial institutions onto one low introductory or promotional rate credit card with Chase. Fees may be associated with your balance transfer.
What is a cash advance?
You can use your credit card to withdraw cash at an ATM or from one of our branches. To use an ATM, you must have a personal identification number (PIN) for the credit card. To get a PIN, please call the number on the back of your card.
Cash advances don't have an interest free period and the interest rate assessed on a cash advance is often higher than the rate assessed for purchase transactions. Check your cardmember agreement for details about your cash advance APR and other applicable fees that may apply.
What are foreign transaction fees?
Foreign transaction fees are assessed by your credit card bank for each transaction made in currency other than U.S. dollars. This can include internet sites based outside of the U.S.
Not all Chase card products have foreign transaction fees. If you have one, it's outlined in your cardmember agreement.
Tips for using your credit card while traveling abroad
If a merchant operating outside the U.S. offers Dynamic Currency Conversion when you use your credit card at the point of sale, it still may be cheaper to pay with your credit card in local currency and incur the foreign transaction fee, if applicable. For example, let's say you want to purchase a sweater from a British retailer using your credit card; at checkout the retailer gives you the option to process the credit card payment in local currency (£85) or U.S. Dollars ($110). If you choose U.S. Dollars, the merchant has already handled the currency conversion for you. However, if you choose local currency, Visa/Mastercard handle the currency conversion ($105) and your credit card bank assesses a foreign transaction fee (3%, totaling $108.15), if applicable.
Note: all figures and conversions are for illustrative purposes only
What is dynamic currency conversion?
With dynamic currency conversion, merchants outside the U.S. can let you pay with your credit card in U.S. dollars (USD) instead of the local currency. If you choose to pay in USD, the merchant takes care of the currency conversion.
Keep in mind: When you make purchases with your credit card outside the U.S., it may be cheaper to pay in local currency.
What is a Cardmember Agreement?
Your cardmember agreement contains written terms that govern your credit card account and represents a binding agreement between you and Chase. This agreement contains information on terms, conditions and responsibilities regarding interest charges, balances, payments, fees, dispute procedures, and other important information.
What does "credit limit" mean?
Your credit limit designates the maximum amount of money Chase has agreed to loan to you at any one time. If your balance should ever exceed the credit line, this is referred to as being overlimit.
You may request an increase to your credit limit by calling the number on the back of your credit card; you cannot submit a request online at this time. Your request for an increase to your credit line is subject to the approval of Chase.
What does "available credit" mean?
Available credit is the amount of your credit limit that is currently available for use.
What does Cash advance limit mean?
Your cash advance limit designates the maximum amount of money Chase has agreed to loan to you at any one time in cash through cash advance or other cash-like transactions.