Credit card interest free period

Hi all,

I've got a Westpac credit card that offers 'up to' 45 days interest free on purchases.

What I don't quite understand is WHEN the 45 days starts (and ends)? Their website, nor my statements make it clear at all. I'm just paying it off every 14 days hoping I don't pay interest, but I'd like to draw that out to 30+ days.

My understanding is that the 'timer' starts as soon as you make the first purchase, and ends when it's been paid off. Is this correct?

Eg. The card has nothing owing. I buy something on 1 October, the timer starts and I have 45 days (15 November) to pay it off. I then purchase something on 10th October. The timer is still going so I still only have until 15 November to pay the entire amount off.

Now, if I pay the entire amount off early, say 20th October. The card now shows as nothing owing. If I buy something a few days later, does the timer restart, or does it still need to be completely paid off at 15 November?

Nothing I've read clearly explains this. Or I'm a numpty - either way hopefully someone can clarify

 

Your statement will have a monthly cycle - normally between 28 and 30 days. It's all on the front page of your statement you receive. You will have your statement cycle date which, for arguments sake, is the 25th of the month the your due date will be 14 days after that and you will need to make the full payment of your closing balance during that period to retain your interest free days.

Anything purchased at the start of the statement cycle you will have the full interest free days but if you purchase towards the end of your statement cycle then you will have a lot less.

Your due date and closing balance is on the top right hand corner of your statement - you will need to pay your closing balance in full by that date to retain your interest free days. Towards the middle of the front page will have cardholder name etc then under that has all the relevent info ie number of days in statement cycle, statement from and to, minimum payment due date and opening balance - that's all the info you need.

 

Thanks @The Y-man and @Kinnon Bell .

My latest statement has the following info:
- No. of days in cycle: 29
- Statement from: 5 Sept 16
- Statement to: 3 Oct 16
- Min payment due: $0.00
- Due date: 18 Oct 16

I paid it off completely on 9 September (4 days after spending the money).
I've then purchased a range of things since 17 October (1 day before 'due date').
Based on what you've said, I would then imagine that the current cycle started 4 Oct and will end roughly TODAY (4 Oct + 28-30 days), and I'll have 14 days to pay off current amount. And I won't incur any interest.

Correct?

 

Excellent, thanks mate

 

If I were you I would just make purchases as per usual on the CC without trying to align it with a particular date then when the statement comes in the mail (or online) pay the closing balance in full. If a cycle date or due date falls on a weekend day then the actual cycle or due date will be the weekday immediately before or after.

If you short pay or pay late your closing balance then you forfeit all of your interest free days and pay interest on the whole balance from the start of the statement cycle and it will take another statement cycle after that to 'earn' back your interest free days.

Best way to go about it is to set up a direct debit arrangement with your bank to automatically pay your closing balance in full on the due date.