How does the 55 days interest free period works on a credit card?

Hi guys





I applied for my 1st credit card and activated it on 7th March 2008 with 55 days interest free period. I only want to use the credit card to build my credit card rating by paying it off regularly.





I'm not sure how the 55 days interest free works. Could anyone tell me how it works with example?





When will the 2nd period of 55 days interest free start again?





In Australia, where can I shop with credit card without paying a credit card surcharge?





Many Thanks!|||Most banks offer cards with up to 55 days interest free. I ll try to explain how this works....


If your monthly statement issues tonight then your 55 days start from tomorrow. So if you buy something with your card tomorrow for $100 and you don't buy anything else in that month your balance will show $100 on your statement next month (ie april stmt issues 20th april and due within 25days of the stmt issuing).so every day from then on reduces your "眉p to 55 days interest free". If you dont pay the balance in full by the due date on the statement then next month you will accrue interest on the outstanding balance. Interest is calculated daily from after the due date until the next statement issues so you will see your outstanding balance plus interest on that but any new purchases on that stmt will not accrue interest for that month. So it the best thing to do is to ask or apply for a $500 limit only to start out with, when you get your stmt always pay it out in full by the due date, by doing this you will build up a good credit history with the bank.





positives - pay statement in full by due date builds up good credit history. offers of increase limits by the bank.





negatives - leave outstanding balances each month and only pay the minimum amount required reduces your credit history. no increase limits offered.





Credit card surcharge is the merchant service fee that the banks charges the merchant. If a merchant chooses to they can charge you the merchant service fee but cannot not charge you more than their bank charges them. Some merchants do this but majority don't. You can ask before purchase and most will advertise that they do.|||http://www.creditcardscom.cn/category/credit-card-tips/