How not to lose the interest-free period?
Posted: Wed Feb 19, 2025 5:52 am
The recipe is simple and universal: repay the debt as soon as possible. Remember that the bank's money is on the credit card, not yours, and use it wisely - knowing for sure that you will repay everything before the end of the grace period.
Please note that the grace period for credit cards does not apply to some transactions. These are:
cash withdrawal from ATMs (unless otherwise provided by the bank’s terms and conditions);
transfers to other accounts and cards;
payments in online casinos, bookmakers and similar establishments;
purchase of cryptocurrency and electronic money (WebMoney, Yoomoney and similar).
The grace period is only available for payments made uk mobile database using terminals when purchasing goods and paying for services.
Why does a bank need cards with a free credit period?
Interesting question, isn't it? Why would a bank refuse additional profit if the holder will always adhere to the grace period and not allow delays?
Well, let's answer:
The bank earns from every transaction made with a credit or debit card. When you pay for food delivery or buy a new smartphone in a store, the bank gets a percentage. Of course, this only applies to payments using a terminal: for regular transfers between accounts, the bank gets significantly less, and the grace period does not apply to them.
Not all bank clients strictly adhere to the grace period. When the interest-free repayment period ends, the cardholder is forced to pay interest.
A credit card is just one of the bank's products. By offering a long grace period, a financial institution increases customer loyalty. Some of them additionally apply for a debit card, some take out a loan, and some transfer the organization's current accounts.
As you can see, it is profitable for the bank to offer clients a grace period - with it they will make purchases more often and in any case will bring profit to the organization.
Please note that the grace period for credit cards does not apply to some transactions. These are:
cash withdrawal from ATMs (unless otherwise provided by the bank’s terms and conditions);
transfers to other accounts and cards;
payments in online casinos, bookmakers and similar establishments;
purchase of cryptocurrency and electronic money (WebMoney, Yoomoney and similar).
The grace period is only available for payments made uk mobile database using terminals when purchasing goods and paying for services.
Why does a bank need cards with a free credit period?
Interesting question, isn't it? Why would a bank refuse additional profit if the holder will always adhere to the grace period and not allow delays?
Well, let's answer:
The bank earns from every transaction made with a credit or debit card. When you pay for food delivery or buy a new smartphone in a store, the bank gets a percentage. Of course, this only applies to payments using a terminal: for regular transfers between accounts, the bank gets significantly less, and the grace period does not apply to them.
Not all bank clients strictly adhere to the grace period. When the interest-free repayment period ends, the cardholder is forced to pay interest.
A credit card is just one of the bank's products. By offering a long grace period, a financial institution increases customer loyalty. Some of them additionally apply for a debit card, some take out a loan, and some transfer the organization's current accounts.
As you can see, it is profitable for the bank to offer clients a grace period - with it they will make purchases more often and in any case will bring profit to the organization.