What is Two Cycle Credit Card Billing?
Author: scarymary
Posted: Wed Sep 28, 2005 7:40 pm
Post subject: Two-cycle Billing
Someone please explain to me what Two Cyle billing is. I have read and re-read my new Discover Card Agreement and it might as well be in Greek. I know from reading here that this is not a good thing.
My reason for asking is... I just got a new Discover card. 0% Balance Transfers and 0% Purchases until August 2006. I transferred $2800 to this card. Everyone says here, don't use a card for purchases that you used for a transfer due to the fact they apply payments to the lower APR's first. After the intro period, both the purchase rate and the balance transfer rate are supposed to change to the standard rate (currently 16.9% - don't laugh, this is good compared to the 27.99% I transferred this balance from) HA HA Sears!!! You know I love them!
My goal is to pay this off ASAP but my question is this... Can I use this card for purchases since the rates should be the same for both??? Also, if I still have a balance when the intro rate expires, do I get slammed on interest for all the prior months I had a balance or just for the prior month... I'M SO CONFUSED!!!!! Please bear with me. I'm trying to learn as to not repeat past mistakes.
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Author: scarymary
Posted: Wed Sep 28, 2005 9:20 pm
Post subject:
To be more specific...
I've made a few small purchases in addition to the transfer.
When August 2006 hits, will I pay finance charges all the way back to September 2005 or is there a limit on how far back they can go. I am hoping that two cycle is just a fancy way to say... 2 months!
Author: maddybeagl
Posted: Wed Sep 28, 2005 10:49 pm
Post subject: What is Two Cycle Credit Card Billing?
Quote:
I've made a few small purchases in addition to the transfer
not good. I am not aware of any cards, part. discover offering 0% on both purchases and bt's. Your disclosures should spell out clearly. So now that you did, your payments will go to paying off the bt, first and the purchases and purchase interest, 2nd.
Two-cycle Billing
Issuers which use this method of calculating interest charge two months worth of interest for the first month you failed to pay off your total balance in full. This issue arises only when you switch from paying in full to carrying a balance from month to month.
Author: scarymary
Posted: Wed Sep 28, 2005 11:09 pm
Post subject: What is Two Cycle Credit Card Billing?
Thanks for the reply.
On my pricing schedule from Discover...
I have an introductory fixed 0% BT rate that expires 8/06.
I have an introductory fixed 0% Purchase Rate that expires 8/06.
The BT rate will then be the same as the purchase rate. It seem to me that I will not have a problem even if I am still carrying a balance next August.
Although that is not the plan (want to pay it off), I just want to make sure that I am understanding all the legalese in these agreements.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Wed Sep 28, 2005 7:40 pm
Post subject: Two-cycle Billing
Someone please explain to me what Two Cyle billing is. I have read and re-read my new Discover Card Agreement and it might as well be in Greek. I know from reading here that this is not a good thing.
My reason for asking is... I just got a new Discover card. 0% Balance Transfers and 0% Purchases until August 2006. I transferred $2800 to this card. Everyone says here, don't use a card for purchases that you used for a transfer due to the fact they apply payments to the lower APR's first. After the intro period, both the purchase rate and the balance transfer rate are supposed to change to the standard rate (currently 16.9% - don't laugh, this is good compared to the 27.99% I transferred this balance from) HA HA Sears!!! You know I love them!
My goal is to pay this off ASAP but my question is this... Can I use this card for purchases since the rates should be the same for both??? Also, if I still have a balance when the intro rate expires, do I get slammed on interest for all the prior months I had a balance or just for the prior month... I'M SO CONFUSED!!!!! Please bear with me. I'm trying to learn as to not repeat past mistakes.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: scarymary
Posted: Wed Sep 28, 2005 9:20 pm
Post subject:
To be more specific...
I've made a few small purchases in addition to the transfer.
When August 2006 hits, will I pay finance charges all the way back to September 2005 or is there a limit on how far back they can go. I am hoping that two cycle is just a fancy way to say... 2 months!
Author: maddybeagl
Posted: Wed Sep 28, 2005 10:49 pm
Post subject: What is Two Cycle Credit Card Billing?
Quote:
I've made a few small purchases in addition to the transfer
not good. I am not aware of any cards, part. discover offering 0% on both purchases and bt's. Your disclosures should spell out clearly. So now that you did, your payments will go to paying off the bt, first and the purchases and purchase interest, 2nd.
Two-cycle Billing
Issuers which use this method of calculating interest charge two months worth of interest for the first month you failed to pay off your total balance in full. This issue arises only when you switch from paying in full to carrying a balance from month to month.
Author: scarymary
Posted: Wed Sep 28, 2005 11:09 pm
Post subject: What is Two Cycle Credit Card Billing?
Thanks for the reply.
On my pricing schedule from Discover...
I have an introductory fixed 0% BT rate that expires 8/06.
I have an introductory fixed 0% Purchase Rate that expires 8/06.
The BT rate will then be the same as the purchase rate. It seem to me that I will not have a problem even if I am still carrying a balance next August.
Although that is not the plan (want to pay it off), I just want to make sure that I am understanding all the legalese in these agreements.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 1:48 PM
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