How long after clearing CC balance before being eligible for interest free period?

paddysreturn

Hi, 

I have had an outstanding balance for a considerable amount of time but I’m now in a position to completely clear it. 

How long after clearing do any new purchases become eligible for the 56 day interest free period? (assuming I continue to pay the balance in full).

If the answer is for example 28 days, do these days need to cover a complete statement period? (I.e. a full period with zero balance and zero purchases).

Thanks in advance for any assistance 

Nebulous2

There may be some trailing interest for the balance you had, which will carry through into the next month. 

Purchases will be interest free from the statement date. The 56 days is up to 56 days, you need to time it right to get 56. 

So for an example, statement 1st July with payment due before 22nd July £1000 balance. 2nd July spend £500. 20th July pay £1000. (Full balance)   Statement on the 1st August will charge you what is known as trailing interest on the £1000 for the period from 1st July until 20th July. It won’t charge you interest on the £500 purchases. Statement balance could be £520 - purchases plus trailing interest. Date due 22nd August. 2nd August spend £500. 20th August pay £520 ( full balance from August statement) Statement on 1st September will be £500. Pay it on 20th September and you will have had £500 from 2nd August until 20th September interest free. 

paddysreturn

Thank you Nebulous.

So, in your example, as long as I pay the full balance on any statement, my next purchases are immediately eligible for an interest-free period even if there is still some trailing interest?

[Deleted User]

I noticed last week on a card statement it now states "up to 50" rather than "up to 56"

Which makes sense e.g.

"Pay it on 20th September and you will have had £500 from 2nd August until 20th September interest free. "

That is 50 days inclusive

Nebulous2

paddysreturn said:

Thank you Nebulous.

So, in your example, as long as I pay the full balance on any statement, my next purchases are immediately eligible for an interest-free period even if there is still some trailing interest?

Yes - that's how it works on the cards I have. Paying the full statemented balance avoids interest on any purchases after the statement, but you will have some trailing interest, whether you make purchases or not.

Paying two consecutive statements in full, gets rid of the trailing interest which means it wont attract any interest at all. (Assuming you don't withdraw cash)

You can always setup a direct debit to pay in full and it might extend your interest free period by a day or two, as they aren't taken on the exact date at weekends, they will be a day or two late with no ill effects. It also prevents you forgetting and missing the due date. 

If you do setup a direct debit you need to make sure it will be taken - sometimes it doesn't go through in time on the first month. The way to find out is to check your statement. If the statement says something like "The full amount of £500 will be taken by direct debit on or shortly after the 20th of July then you can safely assume the DD will work. 

Brie

Not all cards are up to 56 days.  I've got one that is I believe up to 42 days.  It's immaterial as it's paid in full every month so the actual number of days aren't an issue for me.

paddysreturn

Thanks very much Nebulous. That’s clear to me now.

Thanks Brie, yes the exact days would be immaterial for me also. It was more to ensure I had fulfilled the requirements to be eligible for the an interest free period once again.