What is 45-day interest-free period and how does it benefit credit card holders?

One of the most important features of a credit card is the zero-interest period, which typically stretches as long as 45 days.

This means if you use your credit card to buy a product or service on a particular date, you may have a period of one and a half months to clear all the dues. Here, we explain this for those who are not well-acquainted with this aspect.

What is the maximum interest-free period given by credit cards?

The time period can vary from 15 days to as long as 45 days, depending on certain factors.

Why does the interest-free period last for one and a half months?

This period typically lasts for one and a half months because the last date usually falls 15 days after the end of a one-month billing cycle. This means the card users can make use of these 15 days, as well as during the time period of the credit cycle.

What happens if you clear the dues during these 45 days?

If you clear the dues during the 45-day period, no interest or late fee is chargeable. However, if this time period expires, interest is chargeable, which begins from the date of the transaction, not after the time period has expired.

Does every transaction get 45 days before the interest starts to accrue?

No, only those transactions which are carried out at the start of the billing month are given 45 days because of the right timing. But if someone uses the card towards the end of the billing month, one wouldn't be entitled to claim the entire 45-day period, but only 15 days.

Should you do transactions during this zero-interest period?

Ideally, one should try to do it, but regular credit card users find it hard to keep track of each and every transaction. So they track from one billing month to another, rather than transaction-wise tracking.

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