How long do I have to repay my balance before I'm charged interest?

By Russell Cavanagh Staff Writer 26 September 2009

Got a Credit Card Question? Send your question to and we'll set our team of credit card experts to it! Related FAQ's & Guides Q. What is included and what isn't included in the interest free period? A. Generally speaking, all credit cards include purchase spending in the interest free period. However, balances resulting from cash withdrawals, buying foreign currency, traveller's cheques and balance transfers outside of a promotional deal are more commonly not included in the interest free period. Q. What is the allocation of payments clause? A. The allocation of payments is a listed clause in the terms and conditions of every credit card. This clause basically states the order in which payments you make to your account will be applied. How Interest Free Periods Work Standard interest free periods come on all credit cards, and they offer a period of up to 59 days of interest free credit if you pay back your spending in full and on time each month.

I'm looking to take out a credit card to use for day to day purchases and hope to pay off the balance in full at the end of each month. How long do I have to pay it off before I'm charged any interest on using the card to make purchases?
Joan Spadley, UK

Interest free periods on credit cards vary but always rely on the balance being repaid in full and on time.

However, outside of specific 0% promotional periods on balance transfers or purchases, they apply to purchases only. ATM withdrawals, cash-back at checkouts or balance and money transfers are not usually included.

The contractual interest-free period starts from the date on the current statement month. Many cards give "up to 56 days" and this consists of the month up to the statement plus an added 25 days.

Obviously, the length of each month varies according to the amount of days it contains but the additional interest-free extension should remain constant.

Some credit cards state between 45 and 59 days as their interest-free repayment period, which equates to an interest-free extension on each statement balance of between 14 and 28 days.

Avoiding unnecessary interest

• Failure to repay outstanding purchase balances in full and on time will attract interest from the date of transaction. Compare credit cards for the best low-interest deals if you are likely to carry balances over each statement period. Reward credit cards or cash back credit cards may, however, be attractive if you can reliably settle up fully each month.
• Perhaps choose a 0% balance transfer credit card if you have a lingering debt you want to stop getting bigger. But do think carefully before making purchases on one of these cards as your repayments will almost certainly go towards paying off the transferred balance total (carrying no interest) before crediting any payment transaction (that will be subject to interest charges).
• Avoid using your credit card to withdraw cash from ATM machines, buy foreign currency or travellers cheques, etc. Although you can make a payment to your account early to reduce the interest, it will start running from the date of transaction.
• Remember that you will usually have a fixed 25 days from the date on the current account statement before interest applies and that the additional length of time before the statement will likely vary slightly depending on the number of days in any particular month.

Summing up

Compare credit cards to find the best deals available to suit your specific needs.

Check the length of interest-free repayment periods stated on the credit card documents or ask the creditor. Avoid going over each deadline with money still owed.

Make sure you avoid transactions not covered by the interest-free period and resist the temptation to use your plastic unwisely.

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