Most of our credit cards have an interest-free period. This means you can avoid paying interest on the things you buy if you pay the full closing balance by the due date each month. Here’s how.

Use the maximum interest-free period available

Your interest-free period is usually 30 days, the total number of days in your statement period. Plus, the additional interest-free period until your payment due date which is either 14 or 25 days (depending on your credit card).

This means your credit card has an interest-free period on purchases of up to 44 or 55 days. The example below shows how the interest-free period works for a credit card with up to 44 days interest-free days on purchases.

Credit card statement example diagram

How to use interest-free days on your card

As long as you don’t have a balance transfer on your credit card, you can make the most of the interest-free period on purchases by:

  1. Paying your full closing balance by the payment due date on the monthly statement.
  2. Making sure you've paid the full closing balance of the previous month’s statement by the due date too.

Remember, payments like BPAY and transfers from non-NAB accounts take a few days to process.

If you have a balance transfer on your credit card

There’s no interest-free period on purchases if you have an outstanding balance transfer amount. You’ll need to pay your outstanding transferred balance in full by your payment due date to be eligible for an interest-free period on purchases.

Here are some other transactions that don’t have an interest-free period:

  • Cash advances: these are cash withdrawals made from your credit card account
  • Gambling transactions: these are considered cash advances
  • Purchasing traveller’s cheques or gift cards
  • Buying or loading value onto a prepaid or store-value card.

Important information

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.

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