If creditors give you no credit for payments made during the billing period, this is called the: a. apr method. b. discount method. c. previous balance method. d. adjusted balance method.

Answer:

If creditors give you no credit for payments made during the billing period, this is called the C: Previous balance method

Explanation:

“Creditor” is the person to whom money or credit is payable.  Now, if the creditor doesn’t give any credit for the expenses made during the billing cycle, it is called “previous balance method”.

It is a method in which interest is based on the “amount” unsettled at the “beginning” of the billing cycle. So, for calculating “finance charges” on a credit card account, one should consider the pending balance at the end of the billing period which is done previously and the interest rate has been added up to that total. This technique is often beneficial for the credit issuer as interest charges are higher in such kinds of methods.  

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