US Bank...Finance Charges..What?

Question

I first want to say that it is usually my dad who takes care of these things. I currently use a US Bank/Visa Check card quite often as I'm home for the summer and have come into a certain amount of cash. My Dad noticed on my last billing statement this

Balance on May 21st: 401.55

FINANCE CHARGES: 7.02

Payments and credits received: $25.00

New balance on Jun. 20, 2008: $383.57

So I'm being charged for something? I think I may have overdrawn like..once in the past, whats going on? Dad's going out of town so he wants me to go to the bank tomorrow and try to get my money back. I'm clueless and I don't want to make a fool of myself TOO badly there.

Any enlightenment would be greatly appreciated :D

Answer 1

I will confess first that I don't use US bank.  My bank, however, will charge me for using my check card as a debit card.  As in, having to put your password in, instead of running it through as credit.  Or it could have been for checks.  Have you ordered checks recently?

Go down to your bank and simply ask what the charges are for.  If the teller doesn't know (and if they are anything like my bank they won't) ask to speak to someone else.  

Don't worry about looking like a fool.  Asking questions, in my opinion, is a very smart thing to do.

Answer 2

On the surface it looks like a interest rate charge for the money you borrowed for the month.  It say you payed $25 last mo.

$401.55 - $25 = $376.55

Your interest rate is (approx) 7.02/376.55 X 12=22.37%

Pay off the total and you won't have the finance charge.