Interest free days give cardholders a set amount of time when they can make purchases without interest being applied to the balance. This interest free period can range from 25 to 60 days, starting at the beginning of a statement period and ending on the date a payment is due.
Chan gets a statement for credit card purchases made between the 1st to the 31st of October. The due date for his payment is the 24th of November, which means he has a maximum of 55 days interest free on purchases made in October.
Interest free days are only available when the balance is paid in full each statement cycle, for at least two statements in a row. So if you don’t pay the full amount off your card or get a balance transfer, you won’t be able to use interest free days.
TIP: Check how many interest free days your credit card offers and compare the statement period and statement due date to make sure you are getting as many days interest free as possible – and plan your purchases around that!