Credit Card Question

etienne_marais

etienne_marais

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Let's say you have a limit of -R20 000 on a credit card and you withdraw to -R1000. If the interest-free period is say 40 days and you make a payment to clear the overdraft say 5 days before the 40 day period ends. How long does the money have to stay in the account to qualify for the next 40 day interest free run before you withdraw it. i.e. I assume you can't just leave it for 3 minutes and withdraw it again ?
 
Each transaction has its own 40 day interest free period. You might see it as the same money you move in and out, but for the bank it's different transactions. So basically as soon as it's received in your credit card account you can withdraw it again.
 
Friedpet said:
Each transaction has its own 40 day interest free period. You might see it as the same money you move in and out, but for the bank it's different transactions. So basically as soon as it's received in your credit card account you can withdraw it again.
Click to expand...

Thanks.
 
I think cash withdrawals attract interest from day one on a credit card if I'm not mistaken...
 
Do you really have a credit card where cash withdrawals are included as interest-free transactions? I was under the impression that all cards in SA charged interest on withdrawals immediately.
 
Dovi said:
I think cash withdrawals attract interest from day one on a credit card if I'm not mistaken...
Click to expand...

Yes

"Interest Free" is on non-cash transactions in general(ATM withdrawal vs POS/Online transactions are flagged differently)
Bank processes incoming payments is first in-first out,so oldest transactions are cleared first (to your benefit) since the interest is calculated daily
 
etienne_marais said:
Let's say you have a limit of -R20 000 on a credit card and you withdraw to -R1000. If the interest-free period is say 40 days and you make a payment to clear the overdraft say 5 days before the 40 day period ends. How long does the money have to stay in the account to qualify for the next 40 day interest free run before you withdraw it. i.e. I assume you can't just leave it for 3 minutes and withdraw it again ?
Click to expand...

What do you mean by withdraw?

Swipe no interest for whatever period. Cash withdrawal, interest starts immediately.
 
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