I've read the details about two-cycle billing in my cardmember agreements. Other than realizing that I'll have a few dollars of trailing interest for 1 extra month after paying off a longtime balance, I'm not sure how this is continually screwing me. Could someone explain what the catch is with two-cycle billing and how it ends up making more money for the creditors? -ingenue
Unless you pay in full, you get whacked with 2 months of interest. http://www.bankrate.com/brm/green/define/ccdefine.asp#Two-cycle billing
If you have a low rate BT, when it's going to expire...OVER-PAY IT!!! Then you won't have "extra" month of interest.
No, I have an old cash advance balance on a Discover Card. I closed the account a couple of years ago because they wanted to raise the interest rate a few points. (At the time I was already ticked at them for burying cash advance interest with the cash advance balance.) So they fixed the rates at closing to the lower (but still sucky) rates. I wasn't able to start making significant payments until about 6 months ago. Next month I'm making my "last" payment on the balance. I'll overpay a few dollars, but I'll probably still have a few cents to wipe out in May. -ingenue
