What is the maximum number of interest-free days I can get?

The humm90 Mastercard offers up to 110 days interest-free on all purchases (excludes cash advances). This is the highest number of interest-free days currently available on a credit card in Australia according to the Finder database. In comparison, most other credit cards offer between 44 and 55 days interest-free. There are also other cards that offer extended interest-free finance options with specific retail partners.

Do additional cards also get interest-free days?

Additional cards linked to your primary card follow the same billing cycle as the primary card and offer just as many interest-free days on purchases.

How do I get interest-free days?

You usually need to repay the full closing balance that's listed on your statement by the due date to get interest-free days. In most cases, you also need to pay the full balance for the previous statement, as well as the statement issued at the end of that period.

What happens if I have an instalment plan on my credit card?

If you set up an instalment plan for part of your balance, you will usually have to pay the required instalment repayment, as well as the rest of your monthly account balance, to remain eligible for interest-free days. These details are shown on your credit card statement. If you're unsure, contact your provider to check whether you can still get interest-free days when you have an instalment plan.

Can I make interest-free purchases with a balance transfer credit card?

Some credit cards let you make interest-free purchases when you have a balance transfer, as long as you pay the entire purchase balance for your statement. These details will typically be shown on your statement. For example, NAB has an "interest-free days payment" amount that you can pay to still get interest-free days while you carry a balance transfer debt. And Westpac has a "Monthly Payment Balance" that shows the amount you need to pay to get interest-free days on purchases. But other cards only offer interest-free days for purchases when you pay the account's entire closing balance, including any balance transfer debt. So it's important to check these details and plan your repayments to make sure it's manageable.

How is buy now pay later different to an interest-free credit card?

Buy now pay later services let you make a purchase and pay it off in instalments. Like with a credit card, if you make the payments on time there should be few if any extra costs (some BNPL companies charge a monthly account fee). But if you miss the payments then you pay late fees. Like interest, these fees can really start to add up.

Credit card interest-free periods: How do they work?

A credit card's interest-free days let you spend money now and then pay it off a bit later without paying any interest.
The interest-free period starts on day 1 of your card's 30-day statement period. Making a purchase earlier in the statement period gives you more interest-free days.
Credit cards offer between 44 and 55 days interest-free, but it depends on the card.

What are interest-free days on a credit card?

Credit cards have statement periods that usually run for 30 days. Day 1 of a statement period is also day 1 of the card's interest-free period.

Let's say your credit card gives you 55 days interest free. This means you have 55 days from day 1 of the statement period before you get charged any interest on your card purchases.

Any purchases made on day 2 give you 54 days interest free. By day 3 you have 53 interest-free days left. If you make a purchase on day 30, the last day of the statement period, you have 25 days before interest is charged.

Once you hit the 55-day mark you can pay off all your spending and pay no interest. Or you'll get charged interest on any unpaid balance on the card.

Check out credit cards with 0% interest rate offers.

Example: How to use the interest-free period on a credit card

Say you had a credit card that offers 55 interest-free days, with a statement period that starts on the 1st of each month and ends on the 30th. If you were making purchases in June, here's how it works:

1 June. First day of the statement.
30 June. Last day of the statement.
25 July. The 55-day interest-free period ends. This is also the payment due date for this statement period.

Now here's how your card spending breaks down over this statement period.

You make a $200 purchase on 1 June. You don’t have to pay any interest towards this purchase until 25th July, which gives you 55 interest-free days.
You make a $100 purchase on 20 June. This is the 20th day of your statement period, which means you get 35 days interest-free before a payment is due on 25th July.
You make a $150 purchase on 30 June. This is the last day of your statement period but the purchase won't attract any interest until 25th July, giving you an interest-free period of 25 days.

In this example, you would have a credit card balance of $450 from new purchases on your June statement. If you paid the total amount owed by the 25th July, you wouldn't be charged interest on your purchases.

You'd also get interest-free days for the next statement period.

I've paid no credit card interest for 11 years – here's how I do it

Will I get a new 55-day interest-free period if I don't pay off my previous month's balance in full?

Usually, when you carry a balance over to your next statement period you won't be eligible for interest-free days for that statement period. To get the interest-free period back, you'll need to pay the total amount listed on your next 1-2 statements by the due date.

How do interest-free days work?

This visual example of interest-free days highlights the interest-free period (in green), when purchases are made, when the statement is issued and what happens if you pay less than the full amount for a billing cycle.
interest free days cc diagram

Key terms for interest-free days

Statement period or billing cycle. The statement period shows activity on your credit card account and usually runs for 30 days, or from when your last statement was issued to when the next one is issued.
Payment due date. This date is listed on your statement and tells you when you need to pay at least the minimum amount. If you want to get interest-free days, you'll usually have to pay the total balance by the due date.
Closing balance or payment closing balance. The total you need to pay by the due date on your statement if you want to get interest-free days for the next statement period. A "closing balance" is usually the total of what's owed on your account.
Minimum monthly payments. This is the minimum you need to pay by the due date on your statement to avoid late fees and a late payment listing on your credit report. You usually can't get interest-free days for purchases if you only pay this amount.
Purchase rate. The interest rate charged on purchases. Interest-free days help you avoid this interest charge.

Is a credit card with interest-free days worth it?

Most credit cards in Australia offer interest-free days on purchases. It might not be the most important feature to you, but it does give you more flexibility in how you spend.

Let's say you have a $2,000 purchase coming up. Paying cash would take a big chunk out of your savings but payday is still 2 weeks away.

In this case, interest-free days would be really helpful. You could make the $2,000 purchase today and wait a few weeks before you have to pay the purchase off.

How to make interest-free days work for you

Understand how the interest-free days and your statement period work. The interest-free period starts when your statement period starts. You don't get 55 days from the start of every single purchase. If you make a big purchase on day 30 of the statement period you have far fewer interest-free days.
Time big purchases carefully. If you have big purchases coming up and want to maximise your interest-free days, make the purchase at the start of your statement period. This gives you more time before you have to pay it off.
Choose your credit card carefully. Interest-free days are a great card feature. But don't forget to look at the card's annual fee, purchase rate and any perks or benefits, like rewards or frequent flyer points.

Finder survey: How long have Australians had their current interest-free credit card?

Response
5+ yrs	37.5%
2 yrs	27.94%
1 year	13.24%
3 yrs	13.24%
Less than 1 year	4.41%
4 yrs	3.68%

Source: Finder survey by Pure Profile of 1113 Australians, December 2023

Frequently asked questions

The humm90 Mastercard offers up to 110 days interest-free on all purchases (excludes cash advances). This is the highest number of interest-free days currently available on a credit card in Australia according to the Finder database.
In comparison, most other credit cards offer between 44 and 55 days interest-free. There are also other cards that offer extended interest-free finance options with specific retail partners.
If you set up an instalment plan for part of your balance, you will usually have to pay the required instalment repayment, as well as the rest of your monthly account balance, to remain eligible for interest-free days. These details are shown on your credit card statement. If you're unsure, contact your provider to check whether you can still get interest-free days when you have an instalment plan.
Some credit cards let you make interest-free purchases when you have a balance transfer, as long as you pay the entire purchase balance for your statement. These details will typically be shown on your statement.
For example, NAB has an "interest-free days payment" amount that you can pay to still get interest-free days while you carry a balance transfer debt. And Westpac has a "Monthly Payment Balance" that shows the amount you need to pay to get interest-free days on purchases.
But other cards only offer interest-free days for purchases when you pay the account's entire closing balance, including any balance transfer debt. So it's important to check these details and plan your repayments to make sure it's manageable.
Buy now pay later services let you make a purchase and pay it off in instalments. Like with a credit card, if you make the payments on time there should be few if any extra costs (some BNPL companies charge a monthly account fee).
But if you miss the payments then you pay late fees. Like interest, these fees can really start to add up.

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.

Thank you for your feedback!

Written by

Richard Whitten

Senior Money Editor

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Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

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34 Responses

JohnJune 18, 2012

For those that are confused, Yes any purchases in May (Say the 1st of May) would be part of the next statement, and would have 55 interest free days until 25 June… BUT ONLY IF YOU PAID YOUR BALANCE IN FULL FIRST. If you paid the card off to $0.00 on 1 May then your purchase would be interest free until 25 June, if your balance was still outstanding, then even a purchase on 24 May would only have 1 day interest free.

So basically to reset your interest only days and not pay interest:
Pay off the balance of the card before the due date
AND
1.Pay it off on the 1st day (in the example 1 May) of the statement will give you 55 days interest free (in the example up to 25 June)
OR
2. Pay it off on the due date(in the example 25 May) will give you 30 days interest free for purchases before the statement start date (in the example 1 June)
OR
3. If you pay it off on the due date (in the example 25 May) do not use it until the start of the next statement period (in the example 1 June) The you would not have to pay it off until the following months due date (25 July).

Your interest only days ONLY reset after the balance has reached $0.00 so if you had $450 of costs in April, PAID OFF $350 1 May, then SPENT $200 on 24 May, and PAID OFF the $100 left over from the $450 on 25 May, on 26 May you would immediately start paying interest on the outstanding $200 because you never reduced the balance to $0.00.

My suggestion is to have 2 cards, preferably ones that don’t have an annual fee, then simply alternate the cards each month so you can have the full interest free days.

Eg:
Jan:Use card 1
Feb: Use Card 2, Pay off Card 1
Mar: Use Card 1, Pay off Card 2
Apr: Use Card 2, Pay off Card 1
May: Use Card 1, Pay off Card 2
Jun: Use Card 2, Pay off Card 1
etc…

As long as you can pay off the cards, you don’t have a problem, however if having 2 cards just means you will spend more, I would advise against it.

ErinMarch 27, 2012

Hi I need help in understanding what may be the best route for me, I owe $8500 on a credit card( which i would like to cancel as soon possible), and need to know which bank may best suit me, I have searched your sight and have been given advice to look into a Balance Transfer, is this a better option than a Personal loan in the long run, I believe that I can afford to pay at least $500 plus each fortnight,

Thank you
Regards

Finder

JacobApril 8, 2013Finder

Hi Erin,

Thanks for your question.

There are a number of lenders that can assist you with consolidating your debts. If you are transferring multiple debts from more than one credit card, you need to make sure that the combined debt does not exceed your balance transfer limit.

You can also consider consolidating your credit card debt to a personal loan and also see if you can take advantage of other debt consolidation methods available.

Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.

I hope this helps.

Cheers,
Jacob

BananaSeptember 25, 2010

I thought I understand, but then
you wrote

“if your statement and balance was due on the 25th of the current month, and you made a purchase on the 12th, you only have 13 interest free days.”

Wouldn’t a purchase on the 12th be part of the next months balance. Wouldn’t it have to be paid by the 25th on the *next* month?

masafiFebruary 22, 2010

everything ok i understood but what if i made the first purchase on april 15 , when my interest will start?

MargaretJanuary 8, 2010

Thank you to the person who wrote and published this information. It was extremely helpful. You have explained it clearly and I now understand why I was charged interest on my credit card despite assuming I had paid off the balance before interest is charged.

More guides on Finder

Credit card instalment plans
You can manage repayments and secure a low or 0% interest offer with a credit card that provides instalment plans.
Cash advances interest rates and fees
A credit card cash advance is when you withdraw money or get a “cash equivalent” like gift cards – and it typically attracts high rates and fees.

How the interest-free period on a credit card saves you money

With some credit cards you have up to 55 days from the start of your monthly statement period before you get charged interest on your spending.

Key takeaways

What are interest-free days on a credit card?