Tuesday, 15 July 2014

interest-free period

The unquestionable advantage of the use of credit cards is the ability to temporarily use granted in the framework of the loan completely free, ie without charging interest in the so-called period bezodsetkowym. This, unfortunately, is not always valid.

Interest-free period, a time in which to borrowed funds from the card account is not imposed interest rate. Depending on the institution, the so-called card issuer, this period is on average about 50-55 days. The rule as to the length of the grace period has, however, some exceptions, and the key to their understanding of the division of transactions on cash and cashless transactions.

An important type of transaction

Card transactions can be divided into non-cash transactions and cash. For cash transaction is considered to be primarily a cash withdrawal from an ATM, on the other hand, non-cash transactions are credit card on the Internet or standard regulating card receivables for goods and services in stores and service points. It should be noted that the part of financial institutions transfer from the card account is treated as a cash transaction for that other institutions consider him a non-cash transaction.

In principle, therefore, the full period bezodsetkowym are all non-cash transactions. This means that if they will be repaid over bezodsetkowym is on borrowed capital will not be applied, the interest and the time the credit will be completely free. The Bank, however, will immediately begin to charge interest, ie interest-free period will not apply to cash transactions. Interest will accrue course until repayment of the debt. Please note also that the use of payment at an ATM or possibly a transfer of funds from the account linked to the card will also accrue commissions. Its height is at the undeniably useful, because it amounts to an average of about 3% of the transaction, but not less than, say, 5, 7 or gold.

Just to eliminate this kind of costs, you should avoid making any cash transaction with a credit card and treat this possibility only as a rescue option in the case of sudden and unforeseen expenses, for which we can not pay otherwise.

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