Tips for Comparing & Choosing an Interest Free Period Credit Card

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These cards are best for...

• If you pay off your credit card balance in full and on time each month.

These cards are not suitable for...

• If you carry a balance from month-to-month, you will not benefit from interest free periods, and would be better suited to a low interest rate credit card.

What to look for...

• The longest interest free period.
• Tip: Interest free periods are quoted in two ways, “from transaction date” or “from statement date”. To enable a comparison between the two, add 31 days on interest free periods quoted “from statement date”.
• A low interest rate, or typical APR, for purchases.
• If you are looking to switch cards, does it offer a good balance transfer deal?

What to watch out for...

• Is there an annual fee?
• How are payments to the card applied?
• Tip: If payments made to the card are applied first to lower interest rate balances, you will always have to clear lower rate balances, e.g. promotional balance transfers, before you can repay any higher rate balances, e.g. purchases, cash withdrawals.

Don't forget!

• Interest free periods are only available on purchase balances. Balance transfers and cash withdrawals do not offer interest free periods.

Make the most of your card...

• Pay your balance off in full and on time each month before the interest free period ends and you won’t be charged any interest on purchase balances.
• Pay your balance near the end of the interest free period, to make the most out of the interest you will earn on money in your current account.
• Tip: Don't wait until the last day to make your credit card payment, as it may take up to 5 working days to credit your account.
• Tip: Remember to budget your income so you can pay off your credit card balance each month and really benefit from the interest free period.

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