The bank charges interest on your Swell Credit account using a daily periodic rate. The daily periodic rate is the annual percentage rate divided by 365 (“Daily Periodic Rate”). The Daily Periodic Rate is multiplied against the outstanding daily principal balance to determine the daily accrued interest. (Refer to your Swell Credit Account Opening Disclosures for the annual percentage rate for your Swell Credit account.)
For each day in the billing cycle, the bank calculates your outstanding principal balance at the end of the day by adding to the existing outstanding principal balance any new advances and deducting payments and credits to get the daily principal balance (the “Daily Balance”). The Daily Periodic Rate is then multiplied against the Daily Balance to determine the daily accrued interest. The daily accrued interest amount is then added to the outstanding principal balance, plus any other accrued fees and charges, to get the daily total account balance.