Credit Tips: Two-Cycle Daily Credit Card Method

Posted On: January 1, 2006

Author: Kit
Posted: Wed Jul 21, 2004 3:14 pm
Post subject: Two-Cycle Daily Credit Card Method
10/5/2001 3:18 pm CDT

NO MATTER WHO I TALK TO, NO ONE CAN TELL ME WHAT THE 2 CYCLE METHOD OF CALCULATING INTREST IS AND HOW IT COMPARES TO THE TRADITIONAL METHOD. ANY ONE OUT THERE KNOW. IT SEEMS THAT ALL THE PLATINUM CARDS THAT I GET OFFERS FROM USE THE 2 CYCLE METHOD.

Author: Board Monitor
Posted: Wed Jul 21, 2004 3:14 pm
Post subject: Two-Cycle Daily Credit Card Method

10/5/2001 4:19 pm CDT

Kit,

Basically, you want to stay away from the Two-Cycle Daily Balance Method, as it is a more costly option for those who may sometimes carry a revolving balance and other times pay it off in full. For example, if you receive a 3.9% intro rate from a Two Cycles credit card as opposed to an Average Daily Balance, you’ll pay more in finance charges for the first month.

It really doesn’t make a difference if you plan to carry a month-to-month balance, as compared to the Average Daily Balance (assuming all things equal).

Instead of getting into the tech details, look for credit cards that use the Average Daily Balance Method, it is less costly in the long run.

Here’s an article from BankRate.com on the Two-Cycle method:

http://www.bankrate.com/brm/news/DrDon/Dr.Don_19990903.asp?keyword=

Take care,
Alex Daskaloff
http://www.creditcardfreedom.com