Finance Charges

[scientifics]

I am a bit confused about how interest is charged with the new CARD act.  Since no one can have double cycle billing anymore, I just want to make sure I have this straight.

I usually PIF all my cards every month.  If I had an emergency one month, and made more than the minimum payment but not PIF, I will see interest charges from the date I made my first non-PIF charges on my next statement.  The part I am confused about is if I don't PIF one month, and I make new charges in the next statement period and PIF that one (including what I owed the previous month), will I also see interest on these new charges or will I just see my interest from the previous month's charges that were not PIF?

[Walt_K]

You need to look at your card agreement for how your interest charges are calculated, but one thing to note that I think a lot of people (myself included) misunderstand is that double cycle billing referred to a specific practice whereby the average daily balance against which your interest would be assessed was calculated by looking at the average across two billing cycles. Getting billed two consecutive months for interest charges isn't double cycle billing.

[Wolf3]

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@scientifics wrote:

I am a bit confused about how interest is charged with the new CARD act.  Since no one can have double cycle billing anymore, I just want to make sure I have this straight.

I usually PIF all my cards every month.  If I had an emergency one month, and made more than the minimum payment but not PIF, I will see interest charges from the date I made my first non-PIF charges on my next statement.  The part I am confused about is if I don't PIF one month, and I make new charges in the next statement period and PIF that one (including what I owed the previous month), will I also see interest on these new charges or will I just see my interest from the previous month's charges that were not PIF?

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Usually, there will be interest on the charges made in 2nd month as well.