What are interest-free credit cards?
An interest-free credit card lets you spend money on credit and pay no interest for a specific period. It is an excellent financial tool for consumers who want to pay the closing balance in full every month to eliminate interest fees.
The MoneyMe Freestyle Mastercard® is accepted just about anywhere, whether you’re shopping at home or overseas. In addition, this card does not subject you to concurrent order limits, allowing you to purchase as many times as you want up to your credit limit.
This interest-free credit card gives you instant access to a pre-approved credit limit that ranges from $1,000 to $20,000. You can use the credit again once you repay it in part or in full. It’s essentially a revolving credit line that gives you access to instant loans at your convenience.
MoneyMe is all about speed and accessibility. Our seamless application process can get approval within an hour, so you can start getting your finances in order right away. The same goes for our entire range of other variable rate personal loans!
What is credit card interest-free period?
A credit card interest-free period refers to a specific time frame when the interest on your credit purchases is waived if you pay the closing balance in full on or before the due date. It remains in effect as long as you pay your closing balance in full on or before the due date every month.
An interest-free credit card covers most of your everyday expenses, such as groceries, petrol, medical appointments, and retail shopping. However, there are certain transactions that are excluded from interest-free terms, including gambling, cash advances, and some bills.
How many days interest-free on credit card?
The MoneyMe Freestyle Mastercard® has an interest-free period of up to 55 days – significantly longer than the typical 42 days of popular buy now pay later alternatives.
A common misconception regarding interest-free credit cards is that they provide the same interest-free period for every purchase. In reality, you can only get the full 55 days interest-free period if you make a purchase on the first day of your billing cycle. That means if you make a purchase on the second day of your billing, you are entitled to only 54 days interest-free.
A billing cycle typically begins on the first day of every month, but you can negotiate the terms with your lender to suit your preferences. Take a look at the table below to get an idea of how the interest-free period can vary depending on when you make a purchase:
If we consider the table above, you would only get the full 55-day interest-free period if you make a purchase on 1 June. If you make another purchase on 20 June, you would only get 35 interest-free days for that transaction. You would not have to pay interest for both these purchases unless you fail to pay them in full on or before 25 July.
A full payment also entitles you to another period of interest-free days for the next billing cycle. You should always try to make big purchases at the start of the billing cycle, so you have as much flexibility to settle them on or before the due date.
The MoneyMe Freestyle Mastercard® charges a meagre interest rate of 16.99% for purchases not repaid after the 55-day interest-free period. This rate also applies to cash advances, preventing any surprises when you get your billing statements! You can also check your repayment details directly from your smartphone dashboard so that you know exactly when and how much to pay.
Whether you are seeking an interest-free credit card for hefty one-time purchases or small daily expenses, the simplest way to avoid paying exorbitant fees every month is to pay the closing balance in full on or before the due date.
MoneyMe lets you check the closing balance and due date at any time using your smartphone. You should also consider setting up reminders and notifications to ensure you never miss a due date. The minimum monthly repayment amount is directly debited from your bank account, but you must pay the closing balance in full if you want to renew your interest-free period for the next billing cycle.
MoneyMe does not charge early termination fees, so you can easily finalise your loan schedule with us. We also offer a host of other credit products and services that cater to the needs of modern consumers and businesses in Australia. Our proprietary loan rating system enables us to provide variable loan costs and conditions. That means you can be eligible for lower interest rates if you have a good credit report and history. Apply now to discover your MoneyMe loan rating and learn its benefits today!