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2.3. Interest free days

Interest free days are the amount of time you have before interest is charged on your credit card purchases. Interest free days are available when you pay the balance in full every month, and start at the beginning of each new statement.

Here are two examples that show how this feature can be used to your advantage and how it could lead to credit card pitfalls.

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2.3. Interest free days

EXAMPLE 1:
Budi has a card that offers up to 55 days interest free. On the first day of his statement cycle, he buys a new laptop for $2000. This means he has 55 days to pay off the laptop before he starts getting charged interest on the laptop.

As long as Budi pays his credit card statement in full by the due date, he will not be charged interest on his laptop.
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2.3. Interest free days

EXAMPLE 2:
Sundari has a credit card offering 44 days interest free and a balance of $1000. On day 14 of her credit card’s statement period she pays off the balance and makes a new purchase worth $3000.

Because Sundari carried a balance from the previous month, she will be charged interest from the day she makes this $3000 purchase.