One thing that keeps many people from applying for credit cards is the high interest rate they come with.
But did you know there is a credit card interest-free period during which you get the benefit of zero interest? If you know how to use this credit card repayment time optimally, you can use your card for years without incurring any interest charges.
This duration — from the transaction date to the payment due date — is the credit card interest-free period.
Let’s discuss an example for more clarity.
Say your credit card billing cycle is from August 13 to September 13. Any transactions made during this period will be included in the credit card statement issued on September 13. You will then have time till October 2 to settle the amount due without interest. The bank will levy the credit card interest rate after the due date i.e. October 2.
Here, the period from the transaction date till October 2 is the credit card interest-free period.
The following tips can help you use the credit card interest-free period smartly, so you do not incur any interest at all.
This concludes the important details about the credit card interest-free period. Keep in mind that banks levy the credit card interest rate after the due date for making the payment. By paying your dues in full during the interest-free period, you can use your credit card optimally, without incurring any finance charges.
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There are no interest-free credit cards. However, all credit cards offer an interest-free credit period during which you can repay the dues for that billing cycle without any interest charges.
Credit card companies can offer interest-free periods because they expect to earn revenue from other sources. The main benefit of credit card interest-free periods for cardholders is that it offers some time to repay the amount due.
There are no interest-free credit cards. However, credit cards offer interest-free periods, and no additional charges are applicable during this duration.
No bank or credit card company offers interest-free credit cards. However, before applying for a regular credit card, consider the fees and charges, rewards program, credit limit and the credit card interest-free period.
Pay your credit card bill in full before the end of the interest-free period to avoid incurring any interest charges.