It’s a time in your statement cycle where you can buy things without being charged purchase interest.
Most credit cards offer an interest free period up to a certain amount of days – with us it’s up to 44 or 55 days, depending on the card type. Statement cycles are around 30 days and we allow you 14 or 25 days to make your repayment. If you add these two periods together, you get the maximum number of interest free days available.
To be eligible, you need to pay your closing balance (excluding any balance transfer amount) in full by the due date each month.
The actual number of days you’ll get depends on when you make your purchase in your statement period – this is why you’ll always see ‘up to’ before the maximum number of days.
Let’s say you have a credit card with up to 55 days interest free on purchases.
As long as you paid your full closing balance the previous month, you’ll get the full 55 days interest free on any purchases made on the first day of your statement period, 54 on the second day and so on. If you buy something on the day your statement period ends, you’ll get 25 days interest free. The earlier you make the purchase, the more interest free days you’ll get.
If you pay less than your closing balance, you won’t be eligible for interest free days during that statement cycle. And you’ll be charged interest on the outstanding balance – this will appear on your next statement.
You can get your interest free perks back in your next statement cycle by paying down your closing balance by your due date.
Speak with someone from the team today.