Interest charge on credit card

W

whiskey1

Registered User
Messages
118
Hello, I recently queried interest charges on my credit card and was informed that the calculations involved 'reach back' charges. I have never heard of a 'reach back' charge before. If someone reading this has heard of this before you might let me know.

Thanks.
 
Only thing I could come across after a quick search on web suggested that some US based credit card issuers use a two cycle system for calculating interest. If you pay your bill in full one month then no interest accrues on purchases however with a two cycle system you have to have two back to back months of balance being cleared in full to avoid interest charges. Where you dont have two back to back months clearing the balance in full, the credit card issuer then reaches back to charge interest for the "interest free" period.

Not sure if that is the explanation *shrug*
 
Thanks for your replies.

I have been using credit cards for over 10 years and this is the first I have heard of this 'reach back charge' on a credit card.
 
Is it an AIB CC ? They changed their T&C recently and it was not very clear as to what it meant exactly but it did seem to be about not clearing in full a balance of a previous month.
 
I think I remember something like this where there is a penalty over two months for not clearing the credit card balance.
 
I have never heard of that either. I would be asking them to explain it to me if I were you
 
You must log in or register to reply here.
Back
Top