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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Can They Do This? Date:  8/22/2001  9:50 AM
Author:  SirWired Number:  87681 of 312992

The interest charge makes sense to me. You didn't pay off the balance within the grace period, so they charged you one month's interest on the average daily balance. I don't know of a single credit card, my nice credit union included, that does not compute based on the average daily balance (as opposed to the closing balance, which is what you were expecting). Since the bill was not paid until the last day of the billing period, the average daily balance is more-or-less equal to the balance for the whole month. (You did have the use of their money for pretty much the whole cycle, so they are charging you intersest on it.) Look on the bright side, they could to a FUSA-style double-cycle billing, which computes the average daily balance over two months instead of one.

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