Nearly all credit card provides interest free period. Interest free period is also called “interest-free days,” which means after purchasing something with a credit card, you don’t need to pay for any interests when repaying your bills before certain due dates.

Many banks advertise their credit cards as coming with a certain number of interest-free days, which are usually 44 to 55 days, and some banks might provide credit cards with interest-free days as long as 62 days. But these 55 days do not mean that you have 55 days for every bill. These days are usually the maximum amount of days to pay off a card purchase before any interest will be charged.

Nearly all the banks require customers to select a statement period (a commitment of a purchasing period) for interest-free days. It’s worth to mention that all purchases during your statement period would be due on the same date. Thus, in order to have a maximum interest-free day, you can purchase things on the first day of your statement period. Many banks allow customers to set up their own statement period (or, customers’ preferred due date), and you could set up this statement period wisely in order to have the longest interest-free period.

In order to avoid credit card interest charges, it’s extremely important to pay off every closing balance on or before the due date. If you repay your bills late, except the fact that you might need to pay some Late Fee (usually 5% of your minimum repayment) to the bank, you would lose your interest-free days for your future purchases.

What’s worse, banks would add extra interest rates on your previous purchases during your interest-free days. These interest rates are calculated as five in the ten thousand (0.05%) from the day you purchased, which means you have to pay these interests from the first day of your purchasing to the day you repay the bills. These interests will even add to your arrears, the money that you owe the banks, which increases your “loan” in a horrible way.

The banks would also send you emails or letters and remind you to make these repayments. If you continue to dismiss these information, your credits scores would be lowered and sometimes your bank accounts might be blocked. Thus, it’s very significant to repay your bill within the interest-free period.

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