Home | Best Credit Card Offers | Contact Us

Credit Card Applicationss
Compare The Best Credit Card Offers - Apply via Online Credit Card Applications

INSTANT CREDIT CARDS

0% APR CREDIT CARDS

0% APR BALANCE TRANSFERS

CASH BACK CREDIT CARDS

REWARD CREDIT CARDS

LOW APR CREDIT CARDS

CASH ADVANCE CARDS

AIRLINE CREDIT CARDS

GAS CREDIT CARDS

BUSINESS CREDIT CARDS

STUDENT CREDIT CARDS

BAD CREDIT CREDIT CARDS

PREPAID CREDIT CARDS

CHARGE CARDS

NO ANNUAL FEE

FOR AVERAGE CREDIT

CANADIAN CREDIT CARDS

ONLINE BANKING

BEST CREDIT CARD DEALS

CREDIT SCORES/REPORTS

Information about Online Credit Card Applications
The Best Credit Card Company Section

VISA

MASTERCARD

DISCOVER

AMERICAN EXPRESS

More of the Best Credit Card Companies

CHASE

AMERICAN EXPRESS

DISCOVER

CITI

CAPITAL ONE

 

U R @: Education Center : Understanding the Fine Print : Grace Periods and Balance Computation Methods: Know How to Trim Interest Costs


GRACE PERIODS AND BALANCE COMPUTATION METHODS: KNOW HOW TO TRIM INTEREST COSTS

When you use your credit card, your purchases do not immediately begin accruing interest.  In fact, you are not charged interest for anywhere between twenty to twenty five days.  This interest reprieve is known as a grace period, and applies to consumers who pay their new balance in full each billing period. If you do not pay your balance in full each month, however, you will be subject to interest charges. 

Thanks to the CARD Act, credit card companies now use the Average Daily Balance Method to compute interest.  By this method, interest is calculated based on your average balance during the most recent billing cycle.

Prior to the CARD Act, some companies utlized the Two-Cycle Method, which was not quite as consumer friendly, as it averages the balance from two billing cycles.  For example, if you have an average daily balance of $10,000 in March and, after paying your card off, $0 in April, you will be charged interest on an average daily balance of $5000 at the end of your April billing statement. 

Clearly, the Average Daily Balance Method provides much better value to consumers, as you will not be “penalized” for having carried a high balance during the previous billing period.

Fortunately, the new credit card laws banned the double cycle billing, Nevertheless, it is still important to review credit card applications carefully to avoid extra interest charges and find a card with a long grace period.


Read more related articles: Understanding the Fine Print

 

BEST CREDIT CARD OFFERS: Best Credit Cards | Best Reward Credit Cards | Visa Credit Card Offers | 0% Balance Transfers |Best Credit Card Offers | Compare Credit Cards | Credit Card Applications | No Balance Transfer Fees | Free Credit Scores | Education Center | Credit Card Blog | About Us | Privacy Policy | Terms and Conditions/Disclosure Policy | Site Map | Home

*Important Disclaimer: See online credit card applications for complete details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the “Apply Now" button, you can review the credit card terms and conditions on the issuing company's website.
© 2006-2010 SmartCreditChoices.com. All rights reserved.