Ignorance costs $ !!!

[Tamara (Homes Down Under)]

I have to admit that I have been totally ignorant as to how to use my credit card.

I found out some useful info yesterday and figured that it would be useful to share so that people don't make the mistake that I have been making.

 

My credit card has a 55 day interest free period for purchases.

I thought that the interest free period started from the purchase / transaction date. IT DOESN'T!

 

Your 55 day interest free period starts from the date after your statement date. This means that if you purchase an item at the wrong time you will not get all your interest free days and if you purchase during the statement periods your interest free days will be reducing.

At 20% interest that adds up to a lot of money.

 

I was also told by a customer service rep at Commonwealth that a credit card purchase of an item above $1000 allows you the option to give them a call and ask for a "Great Rate". The Great Rate is .99% interest for 3 months! That's a massive saving just for a phone call. They allow you one Great Rate at a time.

If you have more than 1 credit card you can also transfer the balance between the cards and get a rate below 5% for 6 months.

Hope that this is helpful.

[Blossom]

I'm a bit confused as to what you have been told about the time lines there. It is true that the interest free period starts after the statement, so it's never going to be less than the 55 days. If you time it right it can be nearly a month over, but not under.

[Tamara (Homes Down Under)]

I'm a bit confused as to what you have been told about the time lines there. It is true that the interest free period starts after the statement, so it's never going to be less than the 55 days. If you time it right it can be nearly a month over, but not under.

 

I'm also struggling with the dates! From what I was told; Let's say that your statement date is the 3rd of September and you buy a $1000 tv on the 4th of September then you get 55 days to pay off the balance before the bank hits you with interest. However if you buy the tv on the 14th of September then you get 45 days interest free....24th of September...then another 10 days less...up to the next statement date. You will always get the 30 odd day interest free period but timing it wrong could reduce it from 55 down to 30.

[Blossom]

The one I'm with it is UPTO 62 days interest free. So you get a month after your statement and however many days up until that statement comes through. Do first day after the statement it could be 62, or it could be 31 days if the statement is just about to be issued.

Maybe you should have a closer look at the FAQ on your cards website? See if their wording is UPTO also?

[sidestep]

I'm also struggling with the dates! From what I was told; Let's say that your statement date is the 3rd of September and you buy a $1000 tv on the 4th of September then you get 55 days to pay off the balance before the bank hits you with interest. However if you buy the tv on the 14th of September then you get 45 days interest free....24th of September...then another 10 days less...up to the next statement date. You will always get the 30 odd day interest free period but timing it wrong could reduce it from 55 down to 30.

 

Just remember not to buy that TV on the 2nd then.

[Tamara (Homes Down Under)]

Just remember not to buy that TV on the 2nd then.

 

Exactly. One day early could cost you 30 days of interest free.

[Tamara (Homes Down Under)]

I just bought a garden shed for $1250. I gave the bank a call and was given the "Great rate" of .99% for 3 months. It took less than 5 minutes!