What is a double cycle billing?

Billing Billing Cycle is a method that some creditors use to calculate interest to charge for a given billing cycle. The most common use of double cycle billing is a credit card company. However, it is important to realize that not all credit card providers use this method.

Sometimes it is referred to as the average daily balance of two cycles, the billing of the double cycle includes not only the current credit card balance, but also the average daily balance from the previous billing period. What this method of billing credit card can achieve is that it could use a higher value as a basis for calculating interest that will be applied to the current cycle period. In the case of this, the consumer will pay more interest on the current outstanding balance on the card.

For people who carry balance on credit cards from one billing cycle to another, this can lead to payment of additional financial fees over the year.Especially for people who decide to pay the minimum payment each month, or even an amount that is slightly above minimum maturity. From this point of view, the billing of the double cycle directly benefits the issuer of the card, but could be considered to be the penalty of the consumer for continuing the use of the credit card and maintaining the balance.

There are basically three ways to deal with the use of a double cycle calculation. First, the consumer may decide not to do business with credit card companies that use this billing strategy. Any current credit accounts that use the double cycle billing should pay off and closed the accounts. Second, the consumer can choose to keep the account open, but at the end of each billing cycle pays the entire balance. In most cases, this causes the whole problem of billing the Irele double cyclevate.

And finally, the consumer can make Sure that the average daily balance from one month to the next is about the same amount. This will mean that even if a double cycle billing is used, the average balance of two cycles will be almost identical to the current balance and will lead to small or any other financial fees.