Pay off your Closing Balance in full and on time
All new ANZ credit cards come with an interest-free period on eligible purchases. If your card has, for example, up to 55 days or up to 44 days interest-free on the purchases balance, this doesn't mean you have 55 days or 44 days interest-free after every single new purchase. Rather, the interest-free period runs from the beginning of the statement cycle until the payment Due Date.
So, the number of interest-free days you get on a new purchase will depend on how many days there are left on your statement cycle before your next payment Due Date. Remember, it’s "up to" 55 days or 44 days, not 55 days or 44 days for every purchase. Plus, not all transactions, such as cash advances, get the benefit of interest-free days.
To take advantage of the interest-free period, you must pay off your Closing Balance (or if applicable, your 'Adjusted Closing Balance')in full by the Due Date on your statement each month.
Remember, if you don’t pay the full Closing Balance (or if applicable, the 'Adjusted Closing Balance') by the Due Date, the interest will generally be charged on the purchases balance from the day after the Due Date shown on your statement.
By sticking to this one golden rule – that is, paying off your credit card in full by the Due Date each month – you'll avoiding paying interest on your credit card purchases balance, while making positive moves towards your financial wellbeing.
Failing that, pay off as much as you can each month
Okay, so you've had some big expenses this month and you can't pay off your Closing Balance (or if applicable, your 'Adjusted Closing Balance') in full by the Due Date on your statement.
If you find yourself in this situation, your credit card statement will include a line showing the minimum amount you need to pay to meet the terms of your contract, known as the Minimum Monthly Payment.
While paying this amount is acceptable (plus any 'Payable Immediately' amount), it’s certainly in your best interest to pay more than the minimum amount to reduce your overall debt and the amount of interest you’ll be charged on the balance due.
Also, if you haven’t paid the Closing Balance (or if applicable, the ‘Adjusted Closing Balance’) in full by the Due Date, interest will generally be charged on the balance due from the day after the applicable Due Date shown on your statement.
At the very minimum, pay your Minimum Monthly Payment
Let’s assume it’s been a horrid month budget-wise, and there’s no way you can pay off your Closing Balance (or if applicable, your ‘Adjusted Closing Balance’) by the Due Date on your statement.
You have the option to pay the Minimum Monthly Payment (plus any 'Payable Immediately' amount such as overlimit or overdue amounts). If this is paid, you can avoid being charged a late payment fee.disclaimerHowever, you’ll still be charged interest on your purchases balance because you won’t have cleared your Closing Balance by the Due Date.
Remember, if you pay more than the Minimum Monthly Payment (plus any 'Payable Immediately' amount), you'll end up paying off your credit card debt faster than if you only pay the minimum amount.
Check the Minimum Payment Warning on your statement to see an estimate of how much interest you could pay – and how long it could take to pay off the Closing Balance – if you only make the minimum monthly repayments.disclaimer
FAQs
If you'd like to avoid paying interest on your credit card, you have two options. You can pay off your balance before your grace period ends, or you can apply for a credit card that offers a 0 percent intro APR on purchases for a time.
How to get interest waived on credit card? ›
How to Waive Interest on a Credit Card. The best way to go about asking your credit card company to waive interest charges is to call customer service and explain the situation that caused the interest. Being late on a payment or only paying the minimum amount due will trigger an interest charge, for example.
How do I ensure no interest on my credit card? ›
Your goal should be to always pay the Closing Balance (or if applicable, the Adjusted Closing Balance) in full by the Due Date on your statement. This will help you to avoid paying interest on your credit card purchases.
Do I pay interest if I pay statement balance? ›
Pay the statement balance: This means paying exactly what's due. If you pay off the total statement balance by the due date, then you won't pay interest on purchases from the last billing cycle.
What is the biggest strategy to avoid paying interest on your credit cards? ›
Pay your credit card bill in full every month
If you pay off every bill completely, you won't carry a balance into the next month, meaning you won't owe any credit card interest at all.
Can I ask my credit card to stop interest? ›
You can ask your credit card company to freeze the interest on your credit card, but there is no legal obligation for it to agree. The good news, though, is there are several voluntary codes of conduct most credit card companies have signed up to, which encourage them to help you if you are in financial difficulty.
Can credit card interest be forgiven? ›
Credit card forgiveness from credit card companies is unlikely. You may be able to negotiate with credit card companies for other debt relief, like creating a debt management plan. A debt consolidation loan can help you pay down credit card debt faster.
Can I ask my credit card for 0% interest? ›
You may be able to secure a 0% APR offer by requesting one from your credit card issuer. Offers are generally for balance transfers, but some issuers also offer pay-over-time plans or credit line loans. Using your card responsibly and negotiating a retention offer can increase your chances of getting a 0% offer.
How do I offset my credit card interest? ›
Make multiple payments each month
Credit card issuers assess interest based on your average daily balance, not your balance at the end of the month. Paying more than once per month — say, every two weeks — will reduce that average balance and, with it, your interest charges.
When should I pay my credit card bill to avoid interest? ›
You should pay your credit card bill in full before the due date to avoid racking up expensive interest charges that compound when you carry a balance from month to month.
Here are four of the fastest ways to pay off $10,000 in credit card debt:
- Take advantage of credit card debt forgiveness.
- Consider credit card debt consolidation.
- Use your home equity.
- Ask your lenders about financial hardship programs.
If you have a credit card balance, it's typically best to pay it off in full if you can. Carrying a balance can lead to expensive interest charges and growing debt. Plus, using more than 30% of your credit line is likely to have a negative effect on your credit scores.
Why is my credit card still charged interest but paid in full? ›
Even though you paid off your account, there could have been residual interest from previous balances. Residual interest will accrue to an account after the statement date if you have a balance transfer, cash advance balance, or have been carrying a balance from month to month.
Do I get charged interest if I pay the minimum? ›
If you pay the credit card minimum payment, you won't have to pay a late fee. But you'll still have to pay interest on the balance you didn't pay. And credit card interest rates run high: According to November 2023 data from the Federal Reserve, the national average credit card APR was 21.47%.
Do credit cards charge interest if you pay on time? ›
Yes, if you pay the minimum payment on your credit card statement, you could still get charged interest. By paying the minimum you keep your account in good standing but you do not avoid accruing interest. The exception to this is if you have a card with a 0% introductory APR, which usually is for a set period of time.
Does paying the minimum on a credit card avoid interest? ›
By paying it, you'll avoid late fees and penalty APRs, but you'll end up carrying a balance on your card. That balance accumulates interest, which quickly adds up and makes paying off your credit card debt that much more difficult.
Can a credit card have no interest? ›
Credit cards can easily work as a short-term loan, but cards with a 0% APR period have the potential to be free of interest. The key to using a credit card as an interest-free loan is ensuring you pay every cent of your balance off before your card's introductory offer period ends.
Is there interest on credit card if not paid? ›
Here, the rate may be between 14% and 40%. So, when you fail to pay the credit card dues on time, the interest increases on the outstanding account balance. This interest is determined per your remaining balance, which you carry forward past the due date. The more you delay, the higher the interest or late fees.
Do you still have to pay interest if you stop using your credit card? ›
You'll still be responsible for making minimum payments and interest will still accrue.
