No. of Recommendations: 2
My payment was due by June 12. It was credited yesterday, the 9th. Now, I have paid off MANY credit cards in my life, and every time I've paid the full balance on the statement by the due date on the statement, that's been it. No more. Paid in full.

Greetings, Thren, this sounds like a case of two-cycle billing which is all the rage now in how finance charges are calculated. Even "most-favored" Citibank uses this method because it earns the maximum in interest for the credit card companies.

In two-cycle billing, you owe interest for every day you have a balance that you have not paid off by the PRIOR due date. So if your due date was June 12 and your PRIOR due date was May 12, that extra interest was calculated on your average daily balance between May 12 and June 9 (when they credited your account for the payment). Stinks, eh?

The way to avoid (or reduce) one of these "tail-end" finance charges is to pay the maximum possible against your balance as early in the cycle as possible. So if you were paying off $4500, ideally you would want to do this on day 1 of the new cycle (say May 13-June 12) which would be closer to May 13 than early June. That would keep your average daily balance from cycle start to final payoff as low as possible. Actually, if you are carrying a balance on ANY card which uses the two-cycle balance method - and most of them now do - it is always to your advantage to make ANY payment (not just the payoff payment) as early in the cycle as you can manage just for this reason.

I have sometimes had success with getting the credit card company to drop that annoying extra interest owed but generally when the amount is small (say under $5). You could ask Fleet to wipe out this extra lingering interest but for most companies, this stick-it-to-ya last finance charge insult is their equivalent of the screen door hitting you on the @$$ on your way out, because you are GONE, baby!


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