A credit card is basically an ongoing loan that lets you spend as you need to, and you then pay the amount you’ve spent back. For providing this service, all credit cards charge interest on top of your purchases and any cash advances – a percentage on what you’ve spent.

A purchase is when you buy a physical item or a service – groceries, fuel, clothing, utilities, whether from a store or online. On purchases, you can get up to 55 days interest free, provided you pay your balance in full each month – below we’ll explain how the 55 days interest free works.

A cash advance is where you use your credit card to access cash when you need it, usually for emergency situations. Transferring money from your credit card to a transaction or savings account is also considered a cash advance. You don’t get any interest free days with cash advances – interest starts being charged immediately.

At Queensland Country, we offer something quite rare – the interest rate for both purchases and cash advances is exactly the same – a low 13.20%. That’s a huge difference from other financial institutions, whose cash advance rate is often up to 10% higher than their purchase rate.

There are some ways you can save money on your credit card and avoid paying interest all together.

How “up to 55 days interest free” works

Our credit card offers you up to 55 days interest free on purchases. A common misconception is that you get 55 days interest free on each purchase you make. Your 55 days starts at the beginning of your statement period, and ends when your payment for that statement cycle is due.

If you make a purchase on June 1, that purchase will appear on the June statement that you receive at the start of July. If the June statement is due on July 25, and you pay the entire balance of the statement, that purchase will have been interest free for the 55 days. For something that you buy on June 30, you’ll get 25 days interest free.

Remember that the interest free period only applies on purchases. If you pay your credit card in full each month and don’t withdraw cash, you can avoid paying interest completely.