Here are some of the most important cases where you can lose thousands every month with your credit card free of interest. If I paid off my full spend this month, but not last month, then I will no longer pay interest on the loan this month.
If the customer fails to repay the credit line used exclusively for purchase during the grace period after the first settlement period, he will also forfeit interest for the following period.
This is independent of whether or not you fully repay the credit line used in the second period. With this interest calculation practice, customers are required to pay interest over two settlement periods due to a one-time delay. This practice is not common, but occurs at only one bank.
The interest-free period, there is no interest on the loan
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The interest-free after-purchase does not apply when you have repaid all your expenses, but when you do not owe the bank at all. The difference between the two is the bank charges! Of course, if you have a credit card for which you do not pay a monthly fee, no bank statement postage, no SMS fee, or prepaid card purchase, then you will have to pay back all your expenses in order to be free of interest.
However, with the exception of some special offers, such credit cards no longer exist. Because a refund will always cancel your bank charges first, and only afterwards, so for a bank charge of $ 1.00, it will still be true that you have not paid back your entire spend, so the bank will charge you a credit for your purchases. .
Pay back $ 90,000 within the interest-free term, then I only pay $ 10,000
With the exception of Good Finance Bank’s older credit cards and Magyar Cetelem Bank’s credit cards, banks do not grant interest-free partial payment.
While in the above example, you really only pay $ 10 in interest on these two banks, all other banks, as described in the second misconception, will only be free of interest if you repay all your debts.
If I purchased my full credit line this month
But I still repay it with my monthly account management fee and any SMS fees, then all my purchases are interest-free.
The problem here is that your full credit line has been used up. This way, you won’t be covered for your bank fees at the end of the month, even if you pay off all your purchases plus your regular bank charges within the interest-free period. Therefore, your bank will charge an overdraft fee. Although the credit line overdraft fee is capitalized (ie until you owe it to your debt), it does not bear interest (as is usually the case with other bank fees), but since your repayment goes first to bank fees and only afterwards to purchases, they will not be interest-free. Otherwise, not all banks have a credit line overdraft fee, so check with your bank before using your full credit line!