Interest Free Period
The interest free period is the maximum number of days you have before you must pay your bill in full to avoid being charged interest on the amount that you owe. Generally speaking, if you are paying off in full then the longer the interest-free period, the better it is for you.
The interest free period usually only applies to new purchases. Most credit cards do not have an interest free period for cash advances, credit card cheques and balance transfers. Interest charges on these other types of transactions could start immediately from the date of the transaction.
In some cases, the interest-free period applies to your new purchases only if you pay the current month’s balance in full, by the due date.
In other cases, the interest-free period applies to your new purchases only if you pay your current month’s balance in full, by the due date, and have also paid your previous month’s balance in full, by the due date. In other words, you are not using your credit card to borrow.
The Summary Box will tell you about the interest-free period. If you are unclear what method the credit card company uses, ask them for further information and clarification.
