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

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  • 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.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Credit Card Interest Free Period Calculation Reviews

    • IndusInd Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I had applied INDUSIND BANK PLATINUM AURA EDGE CREDIT CARD. I have got very low credit limit, I was promised more than one lakh but given only 50 thousand. I received the card and the PIN on time. It is a lifetime free credit card. There is reward points and offers.
      Was this review helpful? 0
      , chennai
      Reviewed on Sep 16, 2019
    • IndusInd Bank
      IndusInd Bank Credit Card
      "Good Card"
      0.5 5.0/5 "Blown Away!"
      After i applied the Indusind bank credit card i got a transfer from Bangalore to Kolkata hence i contacted them to provide the card to my cousin who is staying in my house but they said that they cannot processed the same and there is no follow up from bank after that. For the converting the EMI option, i have opted for this card.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 16, 2019
    • SBI Cards Credit Card
      "Good Service"
      0.5 4.0/5 "Great!"
      I am having State Bank Of India credit card which was directly taken through Bank .I am using this credit card for more than 2 years ,I have got all the details about the card process.The credit limit was good and it was upto 565,000, I have not faced any difficulties on submitting the documents ..I am totally satisfied on using this card.
      Was this review helpful? 0
      , thane
      Reviewed on Sep 16, 2019
    • Axis Bank Credit Card
      "Good Service"
      0.5 4.0/5 "Great!"
      I am having Axis Bank credit card which was directly taken through Bank .I am using this credit card for more than 2 years ,I have got all the details about the card process.The credit limit was good and it was upto 54,000,This was a paperless approval.I am really satisfied with service of this card.
      Was this review helpful? 0
      , thane
      Reviewed on Sep 16, 2019
    • Bank Bazaar Credit Card
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I came to know about Bank bazaar through Advertisement only.Checking credit score is really good and useful but if the information is provided on date wise then it will be comfortable that is my suggestion App is also good to use and also quite user friendly .I am Satisfied with the service.
      Was this review helpful? 0
      , thane
      Reviewed on Sep 16, 2019
    • IndusInd Bank Credit Card
      "Good Service"
      0.5 4.0/5 "Great!"
      I have applied for Indusind Bank credit card through Online .I have not used the card since not got the pin number .I have tried through App but unable to use getting an update need to open a bank account then can access .While submitting the documents there was no issues .I have not yet used the card since not having pin number .
      Was this review helpful? 0
      , thane
      Reviewed on Sep 16, 2019
    • Bank Bazaar Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have come to know about Bankbazaar from an advertisement on Instagram. I had downloaded the mobile application and applied for credit card. I had a very good experience with Bankbazaar. I started using Bankbazaar's service one month back.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 16, 2019
    • IndusInd Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have received my PLATINUM AURA EDGE MASTER CARD from Indusind Bank. My credit limit is one lakh and I am ok with it. I received the card on time and there is no annual fee. I am using this card to withdraw cash, metro rail ticket, online shopping and petrol.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 16, 2019
    • HDFC Bank Credit Card
      "Fine Card"
      0.5 4.5/5 "Excellent!"
      I am holding the Regalia credit card from HDFC and i am not much using the credit card. I'm much satisfied with the HDFC card limit. I need to pay some annual fee of Rs. 1500 and it won't get waived off even though if i use certain limit. I hold this card for 2 months and i received the first month bill which is not that much clear to understand. There are various option to do the payment.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 16, 2019
    • IndusInd Bank Credit Card
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I just wanted to have a credit card from Indusind Bank Ltd hence taken. I have been looking for a better credit limit. I am using the card for more than a month and the payment mode is easier. I am using the mobile application and there was no issues. The documentation process was simple.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Sep 16, 2019
    • Bank Bazaar Credit Card
      "Fine website"
      0.5 4.0/5 "Great!"
      Bankbazaar service is good and nice. They will take care of the documentation process. I come to know about bankbazaar through online advertisement and the customer support is really nice. This is the first time i have visited the bankbazaar website and its good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 16, 2019
    • IndusInd Bank Credit Card
      "Need to look into the profile before giving card"
      0.5 3.0/5 "Satisfactory"
      No particular reason for selecting the credit card from Indusind bank. I haven't use the card because i haven't get the limit what i expected. For past 2 month ago, i have started using the credit card and there is a annual fee which i have no idea about it. I haven't speak with the customer care till now and the documentation process is really good. If they provide a appropriate limit to the customer based on the salary, it would be fine.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 16, 2019
    • ICICI Bank Credit Card
      "Need to increase the limit"
      0.5 5.0/5 "Blown Away!"
      I am using ICICI BANK credit card recently and its good. The credit limit is very very less only and it would be appreciable if they can increase my limit so that I can use this card frequently. The annual fee is not applicable. There is no hidden charges and the payment mode is easier.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Sep 16, 2019
    • Bank Bazaar Credit Card
      "Good"
      0.5 4.0/5 "Great!"
      I like Bankbazaar's service very much. Their customer service is very good, I was given clear information. I have downloaded their mobile application and it is very user friendly. I have come to know about Bankbazaar from promotion email.
      Was this review helpful? 0
      , chennai
      Reviewed on Sep 16, 2019
    • IndusInd Bank Credit Card
      "Average"
      0.5 4.0/5 "Great!"
      I had applied INDUSIND BANK PLATINUM AURA EDGE CREDIT CARD onlnie. Their mobile application is very slow, I am not able to do transaction through this application. They have given very less credit limit. I was expecting more than two lakhs but given only 75 thousand.
      Was this review helpful? 0
      , chennai
      Reviewed on Sep 16, 2019
    • Bank Bazaar Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The main thing is followups are good, If I place any request for a financial products and they are just taking 7 to 8days and getting the card. I am very much happy with the service and response. I am having mobile application and there was no difficulty to access.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Sep 16, 2019
    • IndusInd Bank Credit Card
      "Good"
      0.5 4.0/5 "Great!"
      For fuel, Indusind Bank is charging more surcharges. If I spend for Rs.100 and they were charging 11rupees extra when compared with other banks. I got a life time free card. I am expecting more limit but it was very lesser for me even my credit score is good. There is no offers as of now.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Sep 16, 2019
    • IndusInd Bank Credit Card
      "Good Card"
      0.5 3.0/5 "Satisfactory"
      No particular reason for choosing the indusind bank. I have not received the card on time and they have delayed almost for 3 weeks. I'm satisfied with the credit limit provided to me. They need to communicate with the customer regarding the additional information about the credit card details. I did not received the welcome call and my credit card has been blocked and when i contact the customer care, they said i need to submit some more documents.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 16, 2019
    • Bank Bazaar Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I am impressed with quick response of Bankbazaar.com. I have been using the website for frequently and recently have purchased the policy. Its easy to compare and enquiry. The website is good and user friendly. The response was very prompt from the customer support.
      Was this review helpful? 0
      , thane
      Reviewed on Sep 16, 2019
    • IndusInd Bank Credit Card
      "Better"
      0.5 5.0/5 "Blown Away!"
      Indusind Bank credit card is good and also the charges are standard like other banks. They have provided the credit limit according to the eligibility. There is no annual fee. There is no much reason for getting the card just wanted to have a card from Indusind Bank Ltd.
      Was this review helpful? 0
      , thane
      Reviewed on Sep 16, 2019
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