Double-Cycle Billing

Credit card companies are always trying to come up with ways to charge us extra interest, but double-cycle billing can also work in your favor. This type of billing computes interest from your average daily balance over the current and previous billing periods, instead of just one period.

So if you made small purchases in month one and then took a trip to Tahiti in month two, you might end up paying less in interest, since it's averaged over 60 days instead of 30. If you're spending like there's no tomorrow every month, double-cycle billing may not help you too much.

For example, if you spend $4,000 in one month, your average daily balance for 30 days is $133. But if you only spent 1,000 the previous month and double-cycle billing is used, your average daily balance for $5,000 over 60 days is $83.