How credit card interest is calculated.
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Your statement period and due date
When you have a balance outstanding or there’s activity on your account, we’ll send you a statement every month. It’ll cover your statement period and let you know when your payments are due. If you miss the payment due date, you’ll start accruing interest where applicable.
The different kinds of interest
Interest is calculated at the end of the statement period. It’s calculated on the daily unpaid balance since your previous statement, using the annual percentage rates outlined in your Schedule. If you’ve been charged interest, you'll see it on your statement as:
1. Debit Interest Purchase
This is charged on any purchase made on your credit card.
2. Debit Interest Cash
This is charged when you withdraw money from your credit card (called a cash advance). No interest free period applies and interest is charged from the day the cash advance is completed.
3. Debit Interest Special
his is charged on balance transfers and any time you have a promotional rate on your account. You may see more than one entry for this if you have multiple promotional rates on your account.
Interest free days on purchases
When you make purchases, interest doesn’t get charged right away. To take advantage of interest free days on purchases (which can be up to 55 days depending on your credit card type) you’ll need to pay the total amount owing on your currens statement, excluding any promotional or introductory balance transfer amount(s), by the payment due date.
Interest is charged on all purchases on your outstanding balance from the day after the payment due date. A new interest free period starts as soon as the balance is paid in full.