Here are some of the most important cases where you can lose thousands every month with your credit card free of interest.
If the customer fails to repay the credit line used exclusively for purchase during the grace period after the first settlement period, he will also forfeit interest for the following period. This is independent of whether or not you fully repay the credit line used in the second period. With this interest calculation practice, customers are required to pay interest over two settlement periods due to a one-time delay. This practice is not common, but occurs at only one bank.
If I make a purchase with my credit card but I pay off all my purchases within the interest-free period, there is no interest on the loan.
The interest-free after-purchase does not apply when you have repaid all your expenses, but when you do not owe the bank at all. The difference between the two is the bank charges! Of course, if you have a credit card for which you do not pay a monthly fee, no bank statement postage, no SMS fee, or prepaid card purchase, then you will have to pay back all your expenses in order to be free of interest. However, with the exception of some special offers, such credit cards no longer exist. Because a refund will always cancel your bank charges first, and only afterwards, so for a bank charge of $ 1.00, it will still be true that you have not paid back your entire spend, so the bank will charge you a credit for your purchases. .If I buy $ 100,000 a month, but pay back $ 90,000 within the interest-free term, then I only pay $ 10,000.
With the exception of Raiffeisen Bank’s older credit cards and Magyar Cetelem Bank’s credit cards, banks do not grant interest-free partial payment. While in the above example, you really only pay $ 10 in interest on these two banks, all other banks, as described in the second misconception, will only be free of interest if you repay all your debts.
The problem here is that your full credit line has been used up. This way, you won’t be covered for your bank fees at the end of the month, even if you pay off all your purchases plus your regular bank charges within the interest-free period. Therefore, your bank will charge an overdraft fee. Although the credit line overdraft fee is capitalized (ie until you owe your debt), it does not bear interest (as is usually the case with other bank charges), but since your repayment goes to bank charges first and then only to purchases, they will not be interest-free. Otherwise, not all banks have a credit line overdraft fee, so check with your bank before using your full credit line!
When we defined above that the entire debt would have to be repaid in order to be free of interest, this also included debts previously carried over. So always pay off your credit card spending for interest-free credit just as if you were canceling your bank and settling for the last penny! Let’s just say a refreshing exception: at the Hungarian Cetelem Bank alone, the above example is not a mistake if you have a debt and are not paying the standard installment, but the second check, which includes your purchases for the current month. This is because the bank sends two checks and you pay a higher check for interest-free purchases in the current month.
If I purchased my full credit line this month, but I still repay it with my monthly account management fee and any SMS fees, then all my purchases are interest-free.
The suggestion is logical but false. On the one hand, we have to point out again that any repayment will go to the bank fees first, so the bank will first credit the cash withdrawal fee if it is charged at the time of the transaction. However, even if you pay the full amount and the cash withdrawal fee together, you may not be able to get away with the interest, because if you had a previous debt, your bank will pay the deposit first, meaning that your cash withdrawal will no longer be settled. However, if you do not carry over (or repay) your outstanding debt from the previous month, and in addition to withdrawing the cash withdrawal fee within one day, credit card cash withdrawal will be truly interest-free at most banks.