How does interest get calculated for interest free periods on credit cards?

Our credit cards that are currently eligible for interest free periods are our Visa Platinum Credit Card and our Lifestyle Plus Credit Card.

From 1 January 2019, customers who do not pay the full closing balance by the due date on their statement will only be charged interest on their outstanding balance from the day after the due date, rather than the date the purchase was made.

Other transactions which are not eligible for interest free periods, such as cash advances, continue to be charged interest from the date the transaction was made.

The new way of calculating interest on purchases will affect customers in different ways. Described below are three common scenarios.

I am currently paying interest

The change won’t immediately affect you as you’ll continue to pay interest as you do currently, until you regain the interest free period by paying the full closing balance by the applicable due date.

I pay my credit card balance in full each month by the due date

If you pay off your full closing balance each month, the change won’t directly impact you. You’ll continue to pay no interest on purchases, unless you lose the benefit of the interest free period by failing to pay the full closing balance by the due date.

I sometimes miss a payment

If you usually pay off your full closing balance each month, but sometimes miss a payment, the change will affect you. The good news is that you may pay less interest than under the previous method.

If you lose the benefit of the interest free period, you’ll only be charged interest on the outstanding balance from the day after the due date on your current statement. You can regain the benefit of the interest free period by paying the full closing balance by the due date of a subsequent statement of account.

An Example

Below is an example of how interest would be charged on purchases if you lose the benefit of an interest free.

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