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CC compounded twice annually?!

Valued Contributor

CC compounded twice annually?!

My friend seems convinced that he holds in his wallet a Chase card of some sort that he tells me is compounded twice a year......    Meaning he only gets 2 statements a year? 
 
I didn't want to start an argument with him so I just asked him "so you can PIF twice a year and never accrue any finance charges?"  And he seemed convinced that were the case.
 
I am sure that he's mistaken.  Does anyone have any idea why he might be mistaken?  I just don't want to see him getting raped on his CRs because he doesn't understand his card.  I'm sure that he must know to pay monthly, because he's had the card for a while.  Perhaps he just hasn't charged on it since he got it.  Or maybe he was flat out lying to try to make me jealous Smiley Very Happy

Starting Score: EQ: 665 - TU: 687
Current Score: EQ: 749 - TU: ---
Goal Score: EQ: 760 - TU: 760


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Message 1 of 7
6 REPLIES
Senior Contributor

Re: CC compounded twice annually?!

If such a card exists...I am definitely not aware of it.
Here we go again...
Message 2 of 7
Moderator Emeritus

Re: CC compounded twice annually?!



FretlessMayhem wrote:
If such a card exists...I am definitely not aware of it.


Agreed.  I also highly doubt that such a card does exist.
 
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. Smiley Surprised )
Message 3 of 7
Valued Contributor

Re: CC compounded twice annually?!

I thought someone would have some insight on some kinda of whacko interest formula that involved something semi-annual.  I can't imagine even if such a formula existed that it would permit two payments a year.  I was trying to think how interest could be compounded semi-annually and still require monthly payments but I drew a blank and got a headache.

Starting Score: EQ: 665 - TU: 687
Current Score: EQ: 749 - TU: ---
Goal Score: EQ: 760 - TU: 760


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Message 4 of 7
Moderator Emeritus

Re: CC compounded twice annually?!



thrasher865 wrote:
I thought someone would have some insight on some kinda of whacko interest formula that involved something semi-annual.  I can't imagine even if such a formula existed that it would permit two payments a year.  I was trying to think how interest could be compounded semi-annually and still require monthly payments but I drew a blank and got a headache.


Theoretically, anything is possible.  A CCC could technically use any compunding period they want.  You don't need a "whacko" interest formula in order to determine a payment due on semiannual compounding.  I just doubt there is any CCC that actually does it.

 
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. Smiley Surprised )
Message 5 of 7
Valued Contributor

Re: CC compounded twice annually?!

when I said whacko, I meant something that would involve something semi-annual, but would still charge interest monthly.  Because I couldn't see a CCC EVER allowing someone to go 6 months with no interest.  Maybe he's a fool and he got a 6 month 0% APR and somehow he misconstrued that as that he only had to pay every 6 months.  I give up trying to understand, I'll just let it go and hope he doesnt get himself in trouble.  I trust that he will get a statement in the mail when he needs to pay and READ it!  lol Smiley Very Happy

Starting Score: EQ: 665 - TU: 687
Current Score: EQ: 749 - TU: ---
Goal Score: EQ: 760 - TU: 760


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Message 6 of 7
Highlighted
Moderator Emeritus

Re: CC compounded twice annually?!



thrasher865 wrote:
when I said whacko, I meant something that would involve something semi-annual, but would still charge interest monthly.  Because I couldn't see a CCC EVER allowing someone to go 6 months with no interest.  Maybe he's a fool and he got a 6 month 0% APR and somehow he misconstrued that as that he only had to pay every 6 months.  I give up trying to understand, I'll just let it go and hope he doesnt get himself in trouble.  I trust that he will get a statement in the mail when he needs to pay and READ it!  lol Smiley Very Happy


This sounds like the most likely explanation to me.

 
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. Smiley Surprised )
Message 7 of 7