The most common method of computing finance charges on a credit card is the average daily balance method including new purchases.

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The average daily balance method including new purchases is the most commonly used method for computing finance charges on a credit card. This method takes into account the balance on each day of the billing cycle, including any new purchases made during that cycle, and calculates the average daily balance for the entire period. Finance charges are then applied based on this average balance.

The Most Common Method of Computing Finance Charges on a Credit