Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Credit Card Interest Free Period Calculation

    Credit cards are one financial product that have revolutionised the world today. These plastic cards allow individuals to borrow money against a line of credit. Credit cards have become an essential item that every individual wishes to possess. However, credit cards can also be very detrimental to an individual’s financial state if misused. Customers must ensure that all their credit card dues are paid on time, without any delays, as this would result in their having to pay an additional amount. Also, cardholders are advised to pay more than the minimum due amount every month as paying just the bare minimum would result in dues just piling up. Individuals who opt for risk free methods prefer to pay through debit cards. However, credit cards are needed for individuals as they are a significant contributor to their credit score.

    Additionally banks would encourage individuals to pay for their purchases through credit cards as they would earn a commission from the merchant.

    Coming to interest free period, this period can last for a period ranging from 45 days to 55 days depending on the company and the credit card procured. In case individuals do not pay the complete bill amount prior to the completion of the interest free period, they will have to pay an interest on the amount at a rate of 2% to 3% a month. A number of individuals are not aware of the way interest free periods work, resulting in their becoming defaulters.

    How are Interest Free Periods Calculated?

    An interest free period begins with the first day of the billing cycle, which is also known as the statement period. This interest free period will end about 15 to 25 days after the last day of the billing cycle. A credit card bill or statement will have all details of the total amount that is outstanding, at the end of the interest-free period, date on which statement was generated, all purchases that were made and the due date which is the date when the interest-free period ends.

    This bill cycle lasts for a month from the day the bill for the credit card was generated. Individuals can check the date on which the statement was generated at the right hand top corner of the bill. However, the interest free period of 45 days to 55 days is actually the time available for credit cardholder to pay his/her dues and does not mean that the every purchase made from that credit card has those days that are interest-free.

    For example, in case the statement was generated on the 24th of March, then the statement period is from 24th March to 23rd April, and the due date for the payment is 10th May; the last day of interest-free payment for purchases made between 24th March to 23rd April is 10th of May. Therefore, in case a purchase was made on 24th March, then the interest free period is 47 days but if the purchase was made on 23rd April, then the interest free period is only for 18 days.

    How can this Interest Free Period be used?

    Customers can make the most of this interest free period and ensure that they do not have to pay an extra amount more than what they owe unduly.

    Plan and Purchase

    Customers should plan their spending so that they have a longer interest-free period ahead of them. For example in the case above, if applicants wish to purchase something on the 20th of April, they can push it to the 24th of April so that it is on the first day of the next billing cycle. The payment for this can be made on 10th June instead of 10th of May.

    By pushing the purchase by 4 days, customers can save around Rs.8,000 more in their credit card bill during May. In case customer’s already have a backlog of payments, the additional amount would result in an additional financial burden.

    Multiple Credit Cards

    In case an individual has two credit cards and both of these have different billing cycle, they can plan all their purchases in such a way that they can get a longer interest-free period. This requires some careful planning and understanding of the way credit card interest free period works.

    Credit cards are very popular and useful, apart from coming with a number of unique benefits and perks. But, customers must ensure that they pay all the required bills on time, else they may plunge into the vicious cycle of debts. If they fail to pay their credit card bills on time, they will be charged a higher amount of interest.

    Credit cards are provided by almost every major financial company and banks and are very versatile. These cards come with unique benefits and features. However, if individuals do not pay their bills on time, they will have a hard time getting out of the debt cycle and are therefore advised, to understand every nuance of the way credit cards work, prior to procuring one or using one.

    Credit Card Interest Free Period Calculation Reviews

    • HDFC Bank Credit Card
      "Should be transparent"
      0.5 3.0/5 "Satisfactory"
      I am holding HDFC rewards card its a life time free credit card, more than three years I am using it, they gave me the enhancement of the limit. I have redeemed the points into voucher but I didn't get that benefits, I received the message stating I will get voucher within few days, they should be transparent.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 25, 2019
    • Citibank Credit Card
      "Nice Fuel Card"
      0.5 5.0/5 "Blown Away!"
      From CITI bank I have taken Indian oil card now my spouse is using my card. The points are good for the spends, the limit is good, the bank is sending the statement on time. Payment gateway is very convenient to make bill on time. I am fine with this card.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 25, 2019
    • ICICI Bank Credit Card
      "Good Card"
      0.5 4.0/5 "Great!"
      I am using ICICI credit card more than one year, there was no limit enhancement. Anyway its enough for me, I used to get reward points and also the cash back on the spends. The customer support is good in ICICI, they resolving the queries on time.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 25, 2019
    • RBL Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been holding RBL credit card for long time,They have not charged me annual fee in this card,as it is life time free credit card,and i am happy with the credit limit which they have given me in this card,and even they use to give good offers.
      Was this review helpful? 0
      , pune
      Reviewed on Mar 25, 2019
    • SBI Cards Credit Card
      "Average card"
      0.5 3.0/5 "Satisfactory"
      I am not happy with the Sbi credit card service,their service is not up to the mark,and they have not charged me annual fee in this card,as it is life time free credit card,and the credit limit which they have given me in this card was good,but their offers in this card is not much.
      Was this review helpful? 0
      , pune
      Reviewed on Mar 25, 2019
    • ICICI Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been holding ICICI bank credit card for long time,They have not charged me annual fee in this card, as it is life time free credit card,and i am happy with the credit limit which they have given me in this card,and even they use to give good offers.
      Was this review helpful? 0
      , pune
      Reviewed on Mar 25, 2019
    • SBI Cards Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I am using the credit card with the SBI CARD they have given the credit card limit which is satisfactory with this card also it is user friendly to access. They provide with good offers like cash backs, rewards points and i am using it since from last few years.
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
    • Citibank Credit Card
      "GOOD CARD TO USE"
      0.5 5.0/5 "Blown Away!"
      I hold a credit card with the CITIBANK where the card is user friendly also it is convenient to access. The credit limit with the card is satisfactory also the card has the good offers with this card which was satisfactory. The service is good with this card.
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
    • Bank Bazaar Credit Card
      "CONVENIENT PORTAL TO USE"
      0.5 4.0/5 "Great!"
      It is the first time experience with the Bankbazaar.com and i have been using it through the website as the portal is convenient also it is user friendly to access. the customer service is good and they are responsive also they are good by helping regarding the card.
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
    • HDFC Bank Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      The documentation process was simple with the credit card that i have been holding with the the HDFC BANK, i got the card within 10-15days, the credit limit with this card is good and satisfactory with this card and i am not aware of the card offers.
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
    • HDFC Bank Credit Card
      "Average card"
      0.5 1.0/5 "Really Bad"
      I am not happy with HDFC BANK Credit card . I am holding this card for past 1.5 year . I am not satisfied with credit limit of HDFC bank credit card , i said to customer support to increase the limit they said they cannot do rite now . I use this card for multipurpose .
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
    • HSBC Bank Credit Card
      "AVERAGE"
      0.5 3.0/5 "Satisfactory"
      There is no particular reason for taking the credit card with the HSBC BANK the documentation process was simple and easy to get the card and it took nearly one week. The credit limit was satisfactory with this card. I get good offers with this card.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 25, 2019
    • SBI Cards Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      The application was taken with STATE BANK OF INDIA .This is one of the good card with best service while getting the card . If i do transaction i am getting instant message and mail this is the best part . They charge nominal rate of interest and it is life time free card .
      Was this review helpful? 0
      , pune
      Reviewed on Mar 25, 2019
    • HDFC Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      They were very quick to send me the card and the credit limit is good. It is a life time free card. HDFC BANK has offered me a credit card and the banking process is good.The best about the card is the movie tickets, reward point . The overall customer services are good. Rate of interest is very high and credit limit is 92000 .
      Was this review helpful? 0
      , pune
      Reviewed on Mar 25, 2019
    • Standard Chartered Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My credit card was taken with STANDARD CHARTERED BANK . I am holding this card for past few years The limit is very good, I am getting offers while doing shopping .I never faced any difficulty with their services. It is a very useful card for daily use as well. I am happy with this bank .
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
    • HDFC Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I am happy with the service of HDFC bank as i said it is very safe and secure to use, and even their mobile application is user friendly ,and even their credit card is also good, i hold HDFC corporate credit card,it is life time free credit card, and even the credit limit and offers are good with this card.
      Was this review helpful? 0
      , kolkata
      Reviewed on Mar 25, 2019
    • Kotak Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I am using this card for more than 3 years this is life time free card and rewards point offer . I hold kotak mahindra credit card . Net baking is very user friendly with this card and the process is very easy to get the card, My application has been approved with kotak mahindra bank
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
    • IndusInd Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I hold INDUSIND Credit card , this is one of best card i ever had. I am very old customer of this card, i am using this card for past 5 year . I am happy with the services they offered me , they keep on updating my limit that is the best part . The billing statement is very clear
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
    • HDFC Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      This is life time free card . customer service provided is very good and their response is good and I am happy with HDFC bank.I am satisfied with credit limit and in this card rewards point offer available. .I got HDFC bank credit card approx four years .
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
    • YES Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I am happy with the services they offered me , they keep on uprating my limit that is the best part . The billing statement is very clear .  I hold YES bank Credit card , this is one of best card i ever had. I am very old customer of this card, i am using this card for past 3 year
      Was this review helpful? 0
      , new delhi
      Reviewed on Mar 25, 2019
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