Beware of credit card companies that have two-cycle billing.
Here's how it works: Most banks normally calculate month interest charges based on the average daily balance for that particular month. With two-cycle billing, your interest is calculated based on your average daily balance for the last two billing cycles. What this means is that even if you took care of your previous month's balance in full and on time, you can still be assessed interest charges on those purchases the next month.
If you have a first-hand experience of the horrors of two-cycle billing, we'd like to hear from you.
Fri Dec 22, 2006 01:25:58 AM
dpavshak says:
Im new with a credit card. I walked into my local bank which I have a checking and savings accts and asked to open a credit card since it would be convienent. This was my 1st card ever. National City didnt even want to give me a card, and the teller convinced them to give it to me for the history I had at the bank. So I got the card - National City:Interest rebate. It has a $20 annual fee and a limit of 500. I had it since 8/07 and recently realized it has two-cycle billing. Last week I called about upgrading to the Everyday rewards and they refused me by saying I have to be with them for a year. I asked about it having 2 cycle billing and they said that they quit doing that. Should that still apply to me since I am a previous cardholder?
If you have a first-hand experience of the horrors of two-cycle billing, we'd like to hear from you.