Most credit cards offer an interest-free period on purchases up to a certain number of days. This period is the maximum amount of time between you making a purchase and then being charged interest – as long as you don’t already owe money on your credit card. Being able to buy now and then pay later is one of the biggest advantages of a credit card. So how can you make the most of the interest-free period? Interest is the cost associated with borrowing money through your credit card account, and is expressed as an annual percentage rate. You can find out your interest rates and charges on your CommBank monthly statement. The purchase interest rate is the one most commonly advertised by lenders, and refers to the rate charged on purchases made with a credit card if an interest-free period doesn’t apply. An interest-free period is a period of time when no interest is
charged on a new purchase, and may automatically apply when you open a new credit card account. It will continue to apply as long as you pay your closing balance in full by the due date each and every month. Read more about how credit card interest is calculated. How it worksWith CommBank, for example, each statement period runs for about 30 days and there is then 25 days from when your statement period finishes to the payment due date. This is why all CommBank credit cards offer an interest-free period of up to 55 days (apart from our Business Low Rate credit card). If you’re eligible for an interest-free period, the minimum number of interest-free days you’ll have is 25 days. In the above example, John’s interest-free* period on purchases is up to 55 days. 1. 5 days after John’s statement period begun on May 1, John purchases some shoes for $100. He has 50 days interest-free on this purchase. 2. On May 25, John purchases a TV for $1,000. He has 30 days interest-free on this purchase. 3. On May 30, John’s statement period ends and he receives his statement. John now has 25 days to pay off his closing balance in full which is made up of his purchases during the period. In this case, his closing balance is $1,100. 4. June 24 is John’s payment due date. To avoid paying any interest on the purchases he’s made, John must pay his closing balance in full by the payment due date. If he doesn’t pay in full, he’ll lose his interest-free period on purchases and interest will be charged on his unpaid balance (including any purchases made since his last statement period ended) from after the payment due date. John will receive a late payment fee if he doesn’t pay at least the minimum payment shown on his statement by the due date each month. What happens if you don’t repay your closing balance in full?If you do not pay your closing balance in full or just make a minimum repayment, you will lose your interest-free period and interest will be charged on your unpaid balance from after the due date until you repay in full. How to avoid paying interestIf you have been paying interest on purchases, you can regain your interest-free* period by:
Remember, the sooner you pay off everything you owe, the less interest you’ll need to pay – you don’t need to wait until the due date. How to take advantage of the interest-free* period
Can I use my credit card the same day I make a payment?Yes, if you pay your credit card early, you can use it again. You can use a credit card whenever there's enough credit available to complete a purchase.
How soon can I use my credit card after paying it off?When will the funds be available on my credit card after I make a payment? Typically, you'll be able to use the funds one to two (1-2) business days after you make your payment.
Why can't I use my credit card after paying it off?If you've paid off your credit card but have no available credit, the card issuer may have put a hold on the account because you've gone over your credit limit, missed payments, or made a habit of doing these things.
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