Two cycle billing is the practice of looking at two billing cycles to calculate your interest payments instead of just looking at the prior billing cycle. If you pay off your balances every month, then it doesn’t really matter to you how many cycles they look at to calculate your daily balance; but if you were to need an extra month to pay off something, you could be whalloped with additional interest payments on stuff you already paid for.

For example, let’s say you spent $5,000 in January and paid it off within the grace period. In February, you spend $50 but you need a little while longer to pay it off. The interest payments on that $50 isn’t just on the $50, it’s the average of the $5,000 you already paid off in January with the $50 for February. It’s really sneaky and it’s really unfair, I don’t know why credit cards thought this would escape scrutiny.

With so many credit cards out there, there is no reason why you should get one with two-cycle billing.