What are Grace Periods and why are they important?

Information verified correct on September 23rd, 2016

When you see a credit card being advertised with interest free days this is referring to the time period between the date of the purchase and the date that interest is charged on the card. It is important to know how these grace periods work so that you can make the most of them

Understanding credit card grace periods

If you have been given a card with up to 55 days of interest free shopping you should understand that this means that 55 days are the most days you can have if you do your shopping right. For example, if you make a purchase the day before your interest is added to your card then you will only have one day that is interest-free.
In odder to get the most use out of your card you need to figure out when interest will be added to your credit card if you want to make full use of the 55 days. When you think about it, you are given the opportunity to borrow money for almost 2 months without paying any interest. This is incredible if you know how to work it.
Learn more about 55 days interest free<

Purchasing large items

If you have a high-ticket item that you want to buy in the near future you can use your card now to make your purchase and enjoy the item right away. This works extremely well if you have already planned to make a purchase anyway and know that the funds will be there when you need them.

The problem arises when you see this chance to get something you really want but don’t have any type of plan for payment. Credit cards are easy to use because you’re not passing real money, you are only using a piece of plastic. As long as you understand that you must have the means to pay back this 55 day loan then you will be all set and will avoid serious debt.
Compare 0% Purchases Credit Card Offers here<

Credit cards for business

If you’re planning to use your credit card for work-related expenses then you will be able to take full advantage of these grace periods. If you are the owner of the company and need to buy some retail stock and expect sales to be able to cover the costs within these 55 days then you have used the credit card to make a wise investment. Likewise, if you are an employee that will get reimbursed for expenses by your employer, the grace period is in your favor. Using your credit card means that you do not have any out-of-pocket expenses to worry about.

Every credit card has its own grace period. The 55 days was only used as an example. You should read the terms and conditions on any credit card before applying for one. If the grace period is important to you and will influence how you will use the card, you should look for a credit card that has the most days available interest-free.
Compare Business Credit Cards here

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Credit Cards Comparison

Rates last updated September 23rd, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info

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