CARD SERVICES UNDERSTANDING INTEREST

How does my account return to
interest free status?
Once interest has been charged on any purchases, you are no longer eligible for
interest free days until payment has been received for the full outstanding balance.
When the total balance, and not the statement balance, has been cleared, you will
receive up to 55 days interest free on any new purchases made.
If you have unpaid balances from previous statement periods, and are making
payment for the closing balance on your statement, you will not be eligible for
interest-free days until you have paid your closing balance in full for two consecutive
statement periods.
A final interest charge will still appear on your last statement. Interest will be
calculated on any outstanding balance from the beginning of the statement period
until the date the full payment was received.
In the previous example, full payment is made in the February statement period.
There is no outstanding balance as at 27th February, so the account returns to
interest free status. There is a final interest charge in February which is calculated as
the outstanding balance until this payment was received. No interest is charged in the
following statement period.
What is an introductory offer?
When you opened your credit card account, you may have received an introductory
offer on a balance transfer (also known as a special promotion).
As this introductory period is calculated from your account approval date, the expiry
date will differ from your payment due date. Interest may be calculated on any
outstanding balance from this expiry date. Please contact us if you are unsure of the
expiry date of your offer.
You are still required to make the minimum repayments that appear on your
statement during the introductory period.
Please refer to your letter of offer for more information relating to any offer you
have received.
When is interest charged during the
introductory period?
During an introductory offer of 0% interest on balance transfers, interest will be
charged on the annual fee and any purchases unless the statement balance is paid
in full as indicated on your statement following the balance transfer request. Any
payments made during this period will repay the balance transfer amount before
purchases, cash advances and other fees and charges (excluding interest), until this
balance transfer has been fully repaid. Please refer to page 4 for more information
about how payments are allocated.
Example 3: Full payment is received prior to the end of the introductory period –
0% for 4 months BT
Account is approved on 3rd December 2007 and begins first statement period with
$0.00 balance.
December Statement
Statement Period 3 December 2007 – 2 January 2008
Summary of Charges
Balance from previous statement $0.00
Payments & Credits $0.00
Balance Transfers $1,000.00 Dr
Annual Fee $200.00
Interest & Other Charges $0.00
Closing Balance
Payment Summary
$1,200.00 Dr
Closing Balance $1,200.00
Minimum Payment Due $24.00
Minimum Payment Due Date 27/01/08
Overlimit Amount NOW DUE $0.00
Overdue Amount NOW DUE
Transaction Summary
$0.00
Date Detail Amount Balance
03/12/2007 OPENING BALANCE $0.00
04/12/2007 ANNUAL FEE $200.00 $200.00
06/12/2007 BALANCE TRANSFER $1,000.00 $1,200.00
End of statement
Account approved 3rd December 2007 and requested Balance Transfer (0% for
4 months) on 6th December 2007.
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