How Interest Free Periods Work
Standard interest free periods come on all credit cards, and they offer a period from 45 to 59 days of interest free credit on purchases if you regularly pay off your monthly statement in full and on time.
A. While interest-free periods on credit cards seem similar, there are subtle differences to be aware of.
The length of the interest free period can range between 14 and 28 days after the issue date of the statement.
Interest free periods can also vary on the types of transaction that are included in it. Usually the interest free period will only include purchase transactions, and any other transaction (cash withdrawal, balance transfer, cheque, etc...) is charged interest from the date of the transaction until it is repaid, whether or not you repay your balance in full each month.
Knowing how long you have to repay your credit card balance before interest charges start is important if you want to keep your borrowing under control and avoid needless interest. Read the full answer »
A. All credit cards offer a limited interest free period, and providing you repay your balance in full by the specified date each month, you won't have to pay any interest on your spending.
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. Read the full answer »
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