Credit Card Interst free period

Discussion in 'Money Management & Banking' started by Harry30, 23rd Mar, 2018.

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  1. Harry30

    Harry30 Well-Known Member

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    I am about to put some substantial purchases (private school fees) on the credit card. Mainly to get the points and to take advantage of the 60 day interest free period.

    Does anyone know how the 60 days is worked out. Is it just 60 days from the time of payment? Or does the billing cycle come into it. I receive my account on the last day or each month when interest is charged (rarely pay interst as always just pay off balance). My aim is to put the PS fees on the credit card and then pay the balance in full at the 60 day point.

    I notice that the banks are not exactly transparent on this matter.
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    It varies from card to card. Some are only interest free for the billing cycle, which would be 30 days. If you time it right you can get 55 or 60 days interest free, but if you don't...
     
  3. Harry30

    Harry30 Well-Known Member

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    It is a CBA Diamond Awards MC if that helps. Perhaps I need to read and T&Cs fine print. I am sure it is written down somewhere.
     
  4. Kassy

    Kassy Well-Known Member

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    With ours you need to purchase the day after the statement issue date to get the longest period of interest free so if it’s issued 14/03, purchase on 15/3. To be interest free the payment is then not due until the 30/4. The last couple of cards were the same but it’s definitely worth checking if you haven’t done it before with that card.
     
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  5. Marg4000

    Marg4000 Well-Known Member

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    Our cards are all based on the interest free period starting on the first day of the billing cycle. If I buy on the first day of the cycle, I get the maximum days. If I buy on the last day of the billing cycle, I get fewer days, only until the due date for payment.

    Know your billing cycle dates. Sometimes delaying payment A day or two can give you an extra few weeks before you have to pay.

    And no cash advances which ruin everything.
    Marg
     
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  6. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    The card statement will arrive and have a due date. Pay whole amount due before that date (Not Bpay but transfer) and its interest free. I beleive its a maximum of 60 days....From start date of one billing cycle to the due date of the next....ie each 30 days you get issued a statement.
     
  7. Joynz

    Joynz Well-Known Member

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    Or do what I did and set up card autopay.
     
  8. Ethan Timor

    Ethan Timor Well-Known Member

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    The ‘up to 60 days’ is usually up until the payment due date of the billing cycle.

    Generally, I’m not a fan of credit cards (too easy to spend funds, reduces borrowing power, usually comes with some annual fees) but for what you’re describing the best card might be Gem Visa. Up to 6 months(!) of interest free on all purchases over $250, even longer (up to 5 years) when buying over certain amounts at certain participating shops (such as good guys). Flat annual fee of $100 (I think...).

    Not affiliated with them. Not advocating their merit but they do seem to have a unique offer in the market I reckon. Always read the fine print etc.

    Good luck and happy Easter! :)
     
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  9. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Have you considered interest free balance transfer with not BT fees,
    Interest free any where from 12 to 18 months?
     
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