No. of Recommendations: 0
First of all, always avoid two cycle average daily balance cards, especially if you are going to carry a balance. The only exception, I think, would be if the card offers a great rebate and you will not carry a balance on it.

Basically, my understanding of two cycle average daily balance is that you get nailed if you ever fail to pay your balance in full. For example, let's say you start with a zero balance at the begining of March. During the month, you charge $1,000 worth of stuff, and you receive a statementwith a $1,000 balance at the end of March.

During April, you don't use the card, but you send in a $200 payment. When you receive your bill at the end of April, you now have an interest charge based not only on average daily balance for the month of April, but also on the average daily balance from March! In essence, you lost the grace period fom March. You are still assesed interest at a daily rate of 9.9%/365, but it is now applied to 60 rather than 30 days, so in effect you are paying extra interest (not exactly double, because the average daily balance will fluctuate with your purchases and payments, but extra none the less!).

Good fools looking to get out of debt faster will avoid cards with two cycle average daily balance computation like the plague!!!!!!!!!!

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