Looking for a card that offers affordability and cash-flow flexibility? Find and compare credit cards offer interest-free periods for up to 62 days.
Most credit cards provide an interest-free period when you pay your balance in full by the due date on each statement. Often known as “interest free days”, this feature allows you to avoid paying interest on purchases you make with your credit card for a specific number of days every statement cycle.
Interest-free days start at the beginning of your statement cycle, and end on the statement due date. For example, if you make a purchase on the first day of your statement cycle using a card that offers up to 62 days interest-free, you would have 62 days to pay it off before interest starts to accrue. A purchase made on the second day of your statement period would have 61 days interest-free; purchases made on the third day 60 days, and so on.
Here we look at cards that offer 62 days interest-free and discuss how to compare them, so you can decide if this type of card is right for you.
Which cards offer 62 interest-free days?
While it’s common for credit cards to offer up to 44 or 55 days interest-free, there is a range of cards that offer up to 62 interest-free days. This gives you a greater amount of time to pay off your purchases without attracting interest charges.
Using the 62 days interest-free period to avoid interest charges
Ariel is planning to buy a new washing machine for $1,200. She gets paid monthly and would like to pay off her purchase over two pay cycles.
Her credit card offers up to 62 days interest-free, so she waits until her new statement period begins, and then uses the card to make her purchase on the first day. After 25 days, she receives her wages and transfers $600 to her credit card.
Ariel’s next payday is 30 days later, and she immediately transfers the remaining $600 to her credit card. This strategy allowed her to buy the washing machine when she needed it, but also to pay it off at a pace that was convenient for her without the added cost of interest charges.
How to compare credit cards that offer 62 days interest-free
Make sure you consider these other features and details when looking at credit cards that offer 62 interest-free days.
- Annual fee. A credit card’s annual fee can offset the value you get from interest-free days. Make sure you carefully weigh the benefits of a card against this cost to decide if it’s worth it. If not, you could consider a card with no annual fee that also offers up to 62 days interest-free, such as the Coles No Annual Fee Mastercard.
- Purchase rate. If you don’t pay off the full balance of your card by the due date on your statement, the purchase rate will apply from the day each transaction was made. This means it’s important to always check the standard variable purchase rate for a card before you apply.
- Cash advance rate. This interest rate is usually higher than the purchase rate, and typically ranges from 19–22% p.a.Note that cash advance transactions such as ATM withdrawals, gambling or foreign currency purchases are not eligible for interest-free days, so the cash advance interest rate will apply for these transactions from the day they are made.
- Cash advance fee. If you use your card for a cash advance transaction, you will also have to pay a fee worth around 2–4% of the total transaction.
- Foreign currency fee. Most credit cards charge a fee of around 3% for transactions made overseas or online with an international merchant.
- Other fees. Depending on the credit card, you could have to pay fees in a range of other situations, such as going over your credit limit, making a late payment or requesting a printed copy of your statement.
- Introductory offers. Many credit cards come with sign-up offers for new customers, such as low or 0% rates for purchases or balance transfers, bonus points or a waived annual fee. These deals can provide a lot of value in the short-term, but it’s important to also consider the ongoing features of the card to decide if it will also work for you beyond the honeymoon period.
- Rewards. Most cards that currently offer up to 62 days interest-free also come with rewards programs. This gives you a way to earn points for your account spending, but remember to compare the value of these rewards against other costs (such as the annual fee) to decide if it’s worth it.
- Complimentary extras. Credit cards offering 62 interest-free days can also come with perks such as price protection insurance, merchandise protection insurance and exclusive store benefits. While these benefits can be appealing when comparing cards, remember that they only add value if you actually use them.
If you regularly pay off the full balance by the due date on your statement, a credit card offering 62 interest-free days could give you more flexibility than most other cards. But remember to consider all the other features available, and compare a range of different options so that you find a card that fits all your needs.