I just received an email from Comenity regarding my J Crew card stating that there will be new terms on my account. The part that is some cause for concern is:
How We Will Calculate Your Balance: We use a method called “daily balance (including new purchases).”
How we calculate Finance Charges on your Account
We calculate Finance Charges separately for each Credit Plan, using a “Daily Balance” to determine Finance Charges for each Billing Period. Our calculation method is as follows:
- We start with the beginning balance on your Account each day (including unpaid Finance Charges and fees).
- We subtract any payments or credit adjustments (treating any net credit balance as a zero balance) and add new purchases and debit adjustments posted as of that day. This gives us the "Partial Daily Balance" for the day.
- We then multiply the Partial Daily Balance for the day by the Daily Periodic Rate of Finance Charge. This gives us the "Daily Finance Charge" for the day, which we add to the day's Partial Daily Balance.
- We've now determined the "Daily Balance," which will be the beginning balance for the following day. This results in daily compounding of interest charges.
- At the end of each Billing Period, we add together each Credit Plan's Daily Finance Charge, which gives us the total Account Finance Charge.
Your Statement will show a Balance Subject to Interest Rate, which is the sum of the Daily Balance for each day in the Billing Period divided by the total number of days."
I'm confused by the phrase in red. Does that mean there will no longer be a grace period for purchases? I looked at my Freedom agreement for comparison and it also states that it uses the "daily balance method" under the 'How We Will Calculate Your Balance" section. But it doesn't say anything about daily compounding of interest charges. It says o interest on purchases if you pay your entire balance by the due date, which I would consider the "standard" way on CCs. Am I not reading this correctly? Has anyone gotten anything similar from Comenity?
@parakleet wrote:I just received an email from Comenity regarding my J Crew card stating that there will be new terms on my account. The part that is some cause for concern is:
How We Will Calculate Your Balance: We use a method called “daily balance (including new purchases).”
How we calculate Finance Charges on your Account
We calculate Finance Charges separately for each Credit Plan, using a “Daily Balance” to determine Finance Charges for each Billing Period. Our calculation method is as follows:
- We start with the beginning balance on your Account each day (including unpaid Finance Charges and fees).
- We subtract any payments or credit adjustments (treating any net credit balance as a zero balance) and add new purchases and debit adjustments posted as of that day. This gives us the "Partial Daily Balance" for the day.
- We then multiply the Partial Daily Balance for the day by the Daily Periodic Rate of Finance Charge. This gives us the "Daily Finance Charge" for the day, which we add to the day's Partial Daily Balance.
- We've now determined the "Daily Balance," which will be the beginning balance for the following day. This results in daily compounding of interest charges.
- At the end of each Billing Period, we add together each Credit Plan's Daily Finance Charge, which gives us the total Account Finance Charge.
Your Statement will show a Balance Subject to Interest Rate, which is the sum of the Daily Balance for each day in the Billing Period divided by the total number of days."
I'm confused by the phrase in red. Does that mean there will no longer be a grace period for purchases? I looked at my Freedom agreement for comparison and it also states that it uses the "daily balance method" under the 'How We Will Calculate Your Balance" section. But it doesn't say anything about daily compounding of interest charges. It says o interest on purchases if you pay your entire balance by the due date, which I would consider the "standard" way on CCs. Am I not reading this correctly? Has anyone gotten anything similar from Comenity?
If you PIF you don't have a starting balance, and, therefore not subject to interest. Grace period remains intact.
Now, that I read this again. I'm not so sure. Did they provide the standard breakdown disclosure box? That would probably clear things up. If you are uncertain - call them for clarification.
@FocusedAndDetermined wrote:
@parakleet wrote:I just received an email from Comenity regarding my J Crew card stating that there will be new terms on my account. The part that is some cause for concern is:
How We Will Calculate Your Balance: We use a method called “daily balance (including new purchases).”
How we calculate Finance Charges on your Account
We calculate Finance Charges separately for each Credit Plan, using a “Daily Balance” to determine Finance Charges for each Billing Period. Our calculation method is as follows:
- We start with the beginning balance on your Account each day (including unpaid Finance Charges and fees).
- We subtract any payments or credit adjustments (treating any net credit balance as a zero balance) and add new purchases and debit adjustments posted as of that day. This gives us the "Partial Daily Balance" for the day.
- We then multiply the Partial Daily Balance for the day by the Daily Periodic Rate of Finance Charge. This gives us the "Daily Finance Charge" for the day, which we add to the day's Partial Daily Balance.
- We've now determined the "Daily Balance," which will be the beginning balance for the following day. This results in daily compounding of interest charges.
- At the end of each Billing Period, we add together each Credit Plan's Daily Finance Charge, which gives us the total Account Finance Charge.
Your Statement will show a Balance Subject to Interest Rate, which is the sum of the Daily Balance for each day in the Billing Period divided by the total number of days."
I'm confused by the phrase in red. Does that mean there will no longer be a grace period for purchases? I looked at my Freedom agreement for comparison and it also states that it uses the "daily balance method" under the 'How We Will Calculate Your Balance" section. But it doesn't say anything about daily compounding of interest charges. It says o interest on purchases if you pay your entire balance by the due date, which I would consider the "standard" way on CCs. Am I not reading this correctly? Has anyone gotten anything similar from Comenity?
If you PIF you don't have a starting balance, and, therefore not subject to interest. Grace period remains intact.
This is all you got to worry about, no carrying balances an you'll be just fine!!! 
Thanks everyone! That does make sense. They didn't send the entire terms and conditions - just the parts that changed and everything else stays the same. I hadn't looked at the parts that stayed the same. I got worried there for a sec! I don't plan on carrying a balance on this card ever because the interest rate is so ridiculous.
Thanks again everyone! You have no idea how close my JCrew card came to meeting its fate in the shredder! 
@wolf3 Lol.