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Author: Bottles Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308782  
Subject: Two-Cycle Average Daily Balance Method Date: 4/30/1998 9:02 PM
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I came across this looking on First USAs web site..

http://www.firstusa.com

This how they calculate this. I called to make sure what I though was right was. Turns out it/I wasnt.

Here is how it was explained to me...

This only applies when you go from a zero balance to some balance you carry over to another month. Basically, they back charge you the finance charges of the grace period if you carry over a blance just once.

That is if you have a zero blance month 1 and charge 100.00. The next bill, month 2 has a balance of 100.00. IF you only pay a portion of that the following month will have the finance charges for not only for month 2 to 3 but also finance charges for month 1 - 2 (the previous grace period).

So effectively you are getting charged from Day one when you purchased that item... Unless you pay your bill completely at the end of that FIRST MONTH.

Joy!!

Rob

Bottles
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