Skip to main content
No. of Recommendations: 3
This is know as two-cycle billing and is widly used by the credit card industry.

What they do is average your balance over the last two months and charge you interest on that amount.

This means you pay more interest in the month after you get rid of a balance. It also means you pay less interest the first month you have put the balance on the card because they are averaging in the no-balance month before that. I think a lot of them start the two-cycle balance the second month you have the card, so they can still charge you on the full balance if you run it up right after you get it.

xtn
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.