55 Days Interest Free Credit Cards
Compare Credit Cards with upto 55 Interest Free Days
With upto 55 days interest free days these interest free period credit cards maximiase the opportunity for you to save interest on all your credit card purchases, by sticking to one rock solid rule - you will repay the entire amount of your credit card balance before the statement due date, each and every month.
By following a repayment in full monthly schedule you could benefit from a perpetual interest free period on all the purchases you make using your credit card.
How to select the best Interest Free Period Credit Card
Up to 55 Days interest free Credit Cards - Is their a genuine interest free period or is it a card provider gimmick?
The interest free days often promoted as a benefit of a credit card are totally genuine and with careful credit card management do in fact deliver interest free periods. This interest free period is the period in which you can make purchases using the card without having to pay interest on those purchases. Many cards include an interest free period of up to 45 to 55 days.
The careful card management needed to take full advantage of this card benefit, and avoid paying interest on your purchases, is all about ensuring that the closing balance on your credit card must be paid each and every month in full by the payment date.
A relatively new type of credit card which also offers interest free periods are the 0% Purchase credit cards which incur no interest on purchase for a fixed term which is generally around 12 months, these cards also tend to feature interest free days, post the expiry of the 0% p.a. introductory period.
How do the interest free days work?
The Interest free days on any credit card, which offers interest free days is the sum of two time periods.
Period 1: The Monthly Statement Period that runs for approximately 30 days.
Period 2: This commences on the day following the last day of the Statement period and ends on the date that the statement balance must be paid. This Payment Period typically runs for 14 or 25 days, depending whether the card has 44 (14 + 30) or 55 (25 +30) days interest free period.
How many days interest free will I actually get?
The actual number of interest free days for any particular purchase will vary depending on when you make purchases and the number of days remaining in your statement period.
For example, if you make a purchase on day 15 of your statement period, you will still have a further 15 days remaining of the 30, when your statement period will close, in addition to this you also have the 25 payment period days meaning you have a total of 40 interest free days until you need to pay the balance in full to avoid paying any interest charges.
How to ensure you use the interest free days and avoid any interest
Pay your closing balance in full - This payment must be with your card provider by the due date each and every month to avoid any interest charges and continue to benefit from interest free days in subsequent statement periods.
Purchase early in the Statement period to gain the maximum interest free period - The earlier in the statement period you make purchases the more interest free days you will receive and have to repay the balance of your purchases.
When do your Interest free days commence? - The date your statement period commences (and your interest free period commences) will be published on your credit card statement, check this date and do not assume it is simply the 1st of each calendar month as it rarely is.
What happens if you lose the interest-free period?
If you fail to pay the full closing balance shown on your statement by the Payment Due Date you will loose the benefit of the interest free days on the statement period just ending, which means interest will be charged on each purchase you made during the statement period. This interest will be charged at the cards Purchase Rate and will be calculated from the date each purchase was made, the total of these interest charges will be added to your statement balance and included in the following months statement.
The double whammy of not making the full payment is felt in the next month as no interest free days are applied to purchases during this month, with interest being charged, at the purchase rate, on the whole of the months statement, calculated on the daily balance.
The loss of the interest period really hurts here as interest is charged not only on any new purchases made across the latest statement period, but also on the outstanding balance carried over from the previous Statement period.
Managing your payment schedule to ensure you pay the balance in full
Given the interest penalties incurred when you miss paying your card balance in full each statement period, it is worthwhile planning how you can best manage the payment of this balance each and every month. One popular approach is to organize your statement period end date, so payment due date to coincide with your salary payment date, that way you will have the funds to make the necessary payment. To synch these dates contact your card provider and request that your statement period start date is changed to facilitate this synching of the end date with your salary schedule.
Compare Interest Free Credit Cards - 0% purchase rates on cards for introductory periods are gaining popularity as a means of making one of purchases and incurring no interest as the debt is re paid, these periods can be up to 15 months. Read more
Low Interest Rate Credit Cards - with purchase rates generally below 15% p.a. these cards are popular with card holders who freqently carry a balance on their card and who are looking to minimise the interest charges on these balances. Read more
55 Days Interest Free Credit Cards - Frequently Asked Questions
Balance Transfers from other cards tend not to carry with them interest free periods for the purchases you have made on the card prior to transfer.
If you don’t pay your full closing balance by the due date, you lose your interest-free period for the current statement – and the next. This is not paying the minimum payment amount, but the full closing balance on your statement.
Yes. To make your payments on time, make sure the statement period starts a couple of days later than your payday to allow for weekends and public holidays. Just contact your card provider to arrange this, but note that it can take several statement cycles to adjust to the date you need, so allow enough time.
Paying the full closing balance on your credit card statement on or before the due date is the only way to get your interest-free days.