Interest free periods for credit cards

Some credit cards have an "interest free" period. This is the amount of time that you have to pay for something bought with a credit card before interest is charged provided you have no outstanding debt on the card. It is usually between 40 to 55 days and you will pay no interest if the total amount owed on the statement is paid by the due date.

Monthly statements will be sent to you advising a minimum amount that needs to be paid by a specified date. If you only pay this minimum amount, then interest will accrue on the outstanding balance until the entire debt is paid off.

Not all credit cards offer an interest free period. Where they don't, you pay interest from the day that the item you bought is recorded on the credit card account. Cards with no interest free period will usually charge a lower rate of interest or have less fees.

All credit card cash advances will attract interest from the time that the money is provided to you.