GLOSSARY

Tax lien Teaser rate Term Three C's Total expense ratio Trans Union Transaction Date Transaction Fees Treasury Index Tribureau credit report Truth in Lending Act Two-cycle billing
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Two-cycle billing

With the two-cycle method, the average daily balance is calculated from two billing cycles rather than one and finance charges are typically higher This method, in effect, wipes out the grace period for customers who carry a balance. If the bill is not paid in full at the first billing, interest becomes retroactive back to the purchase date. Most credit card issuers use the single-cycle average daily balance method to calculate finance charges.

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