Credit Cards

Dual cycle billing

Dual-cycle billing is the balance computation method that allows credit card issuers to apply interest charges to two full cycles of card balances, rather than the most recent billing cycle’s balances. Also known as double-cycle billing or two-cycle billing, this practice effectively eliminates the grace period for people who paid off a balance in the previous month. In other words, with dual-cycle billing, even if you paid off your entire credit card bill in one month, you could still be charged interest the following month. The Credit CARD Act of 2009 banned dual-cycle billing effective Feb. 22, 2010.