44 days interest free!

I learnt something today that I'd thought I'd share. I'm sure many here already know this, but I bet I'm not the only one who has been caught out..

I have a 44 day interest free visa card. On the last day of each month when I pay the interest charged to my LOC's and other loan accounts, I xfer enough to the visa to put it into a credit balance, so it never goes more than 31 days in debit.
I though this meant I would never pay interest on the purchases, and I don't do cash advances.

Today I noticed a small interest charge, so I called the bank.

It turns out that my 'statement date' is the 10th of each month and the payment date is the 24th of each month. I don't take any notice of the statements as my spending is under control and I know I will be paying the lot on the last day of the month...

Well because I am paying 6 or 7 days after the payment due date of the 24th, they have been charging me interest, even though I am well under the 44 days..

I have to adjust my habits and pay the balance off anywhere between the 10th and 24th of each month to avoid the interest..

So much for 44 days interest free!!

I should have asked if my statement date could be changed to around the 20th of each month so I can still do all my banking on the last day of the month, however I suspect this would be all too hard for them anyhow.
 
I agree,I don't know why they say 44 days interest free:(
Just make sure you pay it a day or two before it is due,taking into account the time traveling between accounts:)
I fell for it a few years ago as well
 
My card is similarly (unneccessarily) complicated, so I usually refill it from my savings acc within a day or so of using it. I really should get around to finding out the exact rules on mine too.
 
Hi,

Set up autopay so the bank pays your visa every month from your savings account. That way you never pay interest.

Tarah :)
 
I know my MasterCard closes about the 16th each month. I check the online statement and enter the amount due and the date due into my little income/expenditure spreadsheet which I check most days. Because I keep my eye on things daily, I never miss a payment. I don't even think I get a paper statement any more so I don't wait for a statement or I would miss paying.

My spreadsheet has everything coming in and everything going out for the month. I would be lost without it.
 
My card is similarly (unneccessarily) complicated, so I usually refill it from my savings acc within a day or so of using it. I really should get around to finding out the exact rules on mine too.

I find paying it early totally unnecessary,the credit card is there for a purpose,
To use someone else's money for free as long as possible while keeping your own money in your 100% offset account to reduce interest.:D
 
You do actually get 44 days (or close).

Let's say your statement runs from 1-30th of the month. So the last transaction that goes on the statement would be for the 30th. Your payment date would be the 14th (there abouts).

So if you bought something on the 1st of say October, it would go on the end of October statement which is due on the 14th November (44 days).
I pay it off each month. One month hubby paid it and neglected to pay the cents. He just paid the whole dollars so it was a few cents short. When you don't pay it off you forgo the interest free period so it cost me over $100 the next month. Not impressed.
 
Hi,

Set up autopay so the bank pays your visa every month from your savings account. That way you never pay interest.

Tarah :)

we do this - and i think ours is 55 days interest free. but others are correct - look at the period that the purchases cover versus the due dates and you might find that by paying late your a falling outside the 44 days.
 
Did you know you can change your billing cycle?

We prefer our credit card statement to come at the end of the month, as we use it also for hubby's work expenses. That way the payment date is around the 17th-19th of the following month which means that, unless something goes wrong, he has his expenses refunded before we have to pay and are therefore not out of pocket.

When we got a new credit card the account closed around the middle of the month which was a real pain. When I went and saw the bank about it, I was told I could choose between having the cycle end on the 14th of the month (which was what we had been given) or the 28th, so I changed it to the 28th which works much better for us.

Worth an enquiry if your current billing cycle doesn't suit you.
Marg
 
Did you know you can change your billing cycle?

We prefer our credit card statement to come at the end of the month, as we use it also for hubby's work expenses. That way the payment date is around the 17th-19th of the following month which means that, unless something goes wrong, he has his expenses refunded before we have to pay and are therefore not out of pocket.

When we got a new credit card the account closed around the middle of the month which was a real pain. When I went and saw the bank about it, I was told I could choose between having the cycle end on the 14th of the month (which was what we had been given) or the 28th, so I changed it to the 28th which works much better for us.

Worth an enquiry if your current billing cycle doesn't suit you.
Marg

Done! I thought this would be all too hard for the bank, but I just did it over the phone. I am now billed on the 20th with payment due 14 days later so I will be within the payment window when I pay it off each 30th/31st with a couple of days to spare for weekends etc etc..

They (NAB) will only allow 1 billing date alterations/month to a max of 3 per year and no more than a 10 day shift each time. So if you want to move it more than 20 days, it will take 3 months :rolleyes::rolleyes: Oh to be a bank policy writer ha!
 
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