Credit Card Interest-free Period: Everything You Should Know!

Hardik Sharma Credit Card Show

do you get stuck in paying interest on credit card transactions? if so, the interest-free period could be your new best friend. as a credit card user, you may know that there is an interest-free period on your card. it might not be offered by all the banks, but most of them provide a grace period of 45-50 days. this grace period can be used wisely to avoid paying interest, and other credit card charges.

the interest-free period is basically a sum of the monthly statement cycle of 30 days and the credit card bill payment due date of 20 days. the credit card payment due date is considered 20 days from the last date of the statement.

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plan your transactions

if your credit card billing date is 5th March to 6th April, you should make your credit card payments at the start of the billing date.

pay your outstanding balance

to benefit from the interest-free period, you have to pay the entire outstanding amount before or on the payment due date. if any amount from the previous month gets carried forward to the next billing cycle, you will be paying the interest on the remaining amount.

Click here to know about how to use Credit cards interest free.

avoid cash payment

not many credit card users are aware of the fact that the interest-free period is not available on cash payments. banks also charge you for withdrawing cash from your card which is called a cash processing fee.

manage expenses across credit cards

you can use the benefit of the interest-free period by managing your expenses between two credit cards. if the billing date of your credit cards are aligned, and you are able to enjoy a grace period on both cards, then payment of bills becomes easier.