To CreditWorks & Other Exp

Discussion in 'Credit Talk' started by JacquiG, Jul 5, 2000.

  1. JacquiG

    JacquiG Well-Known Member

    Regarding two-cycle vs. average daily balance FC method: is this an issue if you consistently carry a balance? Since you lose the grace period anyway, doesn't your interest clock start ticking on the purchase date? Sorry if this isn't clear - I know what I mean but don't know how to phrase it!
  2. creditwork

    creditwork Well-Known Member

    RE: To CreditWorks & Other

    I am not an expert. If you do carry a balance the two-month billing cycle will add finance charges faster than the one-month period. You do lose your grace period when you carry a balance. I don't have calculations to back this up, but I am pretty sure it is true.

    Profit from the experience.
    Our knowledge is from experience.

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