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How is interest calculated on purchases for credit cards with interest free days?

This really depends on how you currently use your card. We have set out below the most common scenarios:

  • I pay off the entire balance of my card on time, every month

By paying off your entire balance by the due date, you are making the most of your interest free period.  If you keep this up, the change to the interest calculation won’t directly impact you as you will retain the benefit of interest free days on your purchases.

  • I’m paying interest on an existing purchase balance

The change will not impact you until your interest free period starts again. This will occur when you:

-        pay the closing balance stated on that statement of account in full by the due date; and

-        paid the closing balance stated on your previous statement of account in full by its due date.

  • There are times when I miss making a full repayment on my card, but in general I usually pay my closing balance off in full and on time by due date

If you usually pay off your balance, but after 1 January 2019 don’t pay the entire credit card balance by the statement of account due date, this change will affect you. This will mean that you will pay less interest, because instead the of interest accruing from the purchase date, it will apply from the date after the statement due date.