Credit cards

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5th September 2018

Most of us know that credit cards come with an interest rate, and usually high ones. However, just because you could pay interest doesn’t mean you have to. Credit cards have a regular repayment cycle, so the amount of interest you will potentially pay will differ each month. It’s determined by how much you spend, how much you repay, and when you repay it. The easiest way to avoid interest is to pay off your closing balance before your statement’s due date.

Most credit cards come with “up-to-44 days” or “up-to-55 days” interest-free on purchases. But, be wary, this doesn’t mean you get 44 or 55 days interest-free from the moment you buy something. The “44/55 days” refers to from the start of your statement cycle to your statement’s due date. So you could get between a week interest-free or a maximum of 44 or 55 days. Remember if you don’t pay it in full each month, you don’t get your interest-free period. Unpaid balances mean no interest-free days. If you haven’t repaid your owing balance all other purchases will earn interest immediately and there are no interest-free days. Only once you’ve repaid your balance owing will your interest-free days resume normally.