can someone help me better understand what daily balance method for credit cards?

Question

i just recieved my first credit card. I was reading the agreement and was wondering how the daily balance method works. Am i going to be charged interest daily? it is the discover it student card. It states, We begin to impose interest charges on a transaction, fee or interest charge from the day we add it to the daily balance. we continue to impose interest charges until you pay the total amount you owe us. 
So do i have to pay interest daily until i pay my balance or for instance, i have a 150 dollar balance when i recieve my bill, and say the bill cycle ends 10 days later and i dont pay, will i get charged the daily interest method or what. I'm really confused and i really really appreciate the help. It also states, to avoid paying interest pay balance in full (which i plan to do) so what is the daily balance method?

bdancer222 · Accepted Answer

If you pay your statement balance in full each month by the due date, you will not be charged any interest.  This is the interest free grace period between the purchase date and the statement due date.

If you carry balances over to the next billing cycle, you will be charged interest based on the daily balance method.  The daily balance will be multiplied by the daily interest rate (APR divided by 365) to get each days interest.

Most cards use the average daily balance method instead of calculating interest on each days actual balance.  It works out about the same, give or take.

Just pay your statement balance in full every month.  That will build your credit and avoid interest.

By the way, kuddos for actually reading that fine print!!!  Always a good idea to understand the terms of a contract.

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can someone help me better understand what daily balance method for credit cards?

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