Kohl’s is one of the largest retailers in the US. For its clients Kohl’s offers one retailer credit card powered by Chase bank. Clients of Kohl’s can apply for The Kohl’s Charge, which is a credit card free of annual membership fee. The annual percentage rate for this credit card is calculated as a sum of the prime rate, or the highest loan index and a fixed percentage. For any purchases, the annual percentage rate is 21.90%. Since this percentage rate is dependable on the prime rate, it is a subject of change. There is a penalty annual percentage rate, which is applicable when the cardholder makes a late payment or fails to submit at least the minimum payment until the due date of each month. This penalty rate will apply to all balances indefinitely unless the card member pays at least the total minimum payment on time for six consecutive billing periods. Since this is a credit card offered by a retailer there are no transaction fees imposed.

How are Kohls Credit Card Payments calculated?

Kohls credit cards payments are calculated by Chase bank using the method “Average Daily Balance (including new purchases)”. This method calculates the balance for each day of the billing cycle; sums up all the daily balances and then divides them to the number of days in the billing period, usually 30. Thus, the average daily balance is worked out. The average daily balance then is multiplied by the daily periodic rate.  This is how the interest charge on the balance is calculated. Another step in calculating the Kohls Credit Card Payment is defining the total minimum payment, which is mandatory every month. If the cardholder’s balance is less than $25, the minimum payment will be the balance in full. If the balance is bigger than that, the total minimum payment is the greater of $25 or 1% of the new balance adding any periodic interest charge and late fees and/or any past due amounts.

There is a grace period offered by the Chase and Kohl’s. This grace period for the Kohl’s Charge is 25 days. After closing of each billing cycle the cardholder has 25 days to pay off his/her entire balance. If he/she does so, no interest charge will be due on the purchases. However, the cardholder should keep in mind that the total minimum payment due will be applied to balances with lower annual percentage rate. Any amount paid extra over the total minimum payment will be to cover the balances with the highest annual percentage rate first. This is called payment allocation.

Ways to make a payment

Payments can be submitted via post, online, by phone or in person. The usual method of payment used is by mail. Cardholders can find the addresses for mailing their payments on their statements or online. Kohl’s supports an online management center, which allows card members to pay their balances via internet banking and to have 24-hour access to their statements and balance history. It is important to know that payments by phone may be a subject to extra fees.