Texas Finance Code 346.101 – Maximum Interest Rate
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(a) A revolving credit account may provide for interest on an account at an annual rate that does not exceed the greater of:
(1) 18 percent a year; or
(2) the applicable alternative rate ceiling under Chapter 303.
(b) A revolving credit account may provide for interest computed under a method other than the average daily balance method if the amount of interest computed under that method does not exceed the amount of interest computed under the average daily balance method.
Terms Used In Texas Finance Code 346.101
- Revolving credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or open-end credit.) Source: OCC
- Year: means 12 consecutive months. See Texas Government Code 311.005