Interest Free Credit

Most credit card issuers charge interest only from a specified and notified due date for payment and if you pay off the whole amount outstanding then no interest is payable. You can gain up to 56 day's interest free credit on this basis. That is from the day you purchase the goods until the date notified in your monthly statement for receipt by the card company of your payment.

Beware of any credit card that charges interest from the date of purchase this type of card is really not worth applying for. But do note that if you are drawing cash on your card then all credit card companies will charge you an up front handling fee which is higher than the monthly interest rate in most cases. In this situation you are not gaining an interest free period and are paying a premium rate.

If you use your card wisely for short-term borrowings or if you can pay off the whole amount off from your monthly salary you are getting an effective interest free credit arrangement. See also Balance transfers.