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Interest Free Periods Only Apply If You Pay Your Card In Full
Posted February 4th, 2010
and last modified April 19th, 2010
Best Interest Free Credit Card
The Citibank Clear Platinum Visa is the best interest free credit card as it features an interest free offer on balance transfers for the first 6 months. This is combined with a low ongoing rate on purchases and a low annual fee. You also receive instant complimentary benefits
- $99 annual fee
- 11.49% p.a. on purchases
- 0% p.a. for 7 months on balance transfers
- Cash Advance Rate of 21.24%
- Minimum Income Requirement of $50,000 p.a.
- Complimentary purchase cover9 and extended warranty
Click here to read the Citibank Clear Platinum Visa Card terms and conditions
Most people think interest free periods are good all of the time. That is not the way that they work. If you do not pay your full bill prior to the end of the free period the interest is retroactive to the original date of purchase.
Interest free periods are a complicated concept that not all credit card owners fully understand. Many people think that when you own a credit cardinterest free periods on purchases of around 55 days you get a certain number of days that are free of interest charges. This is not entirely true. Most cards do offer . If you pay off your debt in full before that 55 days runs out you will not have been charged interest on your purchases. However, if you do not pay the full amount of your debt then the interest is charged to your account from the original dates of purchase. The only way to avoid interest fees then is to pay your bill in full each month.
How to take advantage of interest free periods
- Spend less then you make. One of the biggest issues with credit card debt is that people spend more then they can afford to pay off each month. Set up a budget and stick to it so that you only use your credit card for the amount of money you will be able to pay off in full at the end of the interest free periods.
- Pay your bill on time. If you miss payments or make late payments you will lose your interest free period. You will also be hit with penalty fees that can be very expensive. The best way to avoid this situation is to set up a direct draft from your cheque account to your credit card bill each month. By doing this you never have to worry about late payments or late fees.
- Keep track of your transactions. You would be surprised to find out how often there are errors on your credit card bill. If you track all of your spending you will be able to compare to your bill each month for accuracy. That way you will not be surprised by a bill that is more then you anticipated paying.
- Do not get cash advances. Cash advances are dangerous. They incur very high interest rates. What’s more the begin gaining interest charges immediately. There is no interest free period, so no matter what, even if you pay your bill in full at the end of the month you will still have paid interest fees.
Interest free periods can allow you to save loads of money, but only if you use them correctly. Understand that you only get the benefit if you pay off your bill each month, otherwise the interest free period is wasted
Related posts:
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- What does 55 days interest free really mean?
- Which Credit Cards that offer interest free purchases for up to 55 days?
- Interest Free Credit Cards – Compare & Apply Online
- How to Pay Off An Interest Free Loan in Time
- Interest Free Deals
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