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A credit card is a specific type of credit granted by a bank for any purpose. Everything sounds simple and inviting. However, you cannot forget about interest accrued on debt.

If the debt is repaid in the interest-free period, no interest will be charged on the borrowed amount. This means that you don’t have to pay anything to use your credit card and the loan is “free”. Almost, because you can’t forget about additional fees – e.g. for card making, possession of the card, insurance against theft. However, if the debt is not repaid during the interest-free period, the bank will start charging interest.

What exactly does it look like?


Ranking of the best online payday loans. In the given billing period, the owner of the credit card is obliged to pay the so-called minimum fee, which is about 5%. You can finish paying off your debt. However, this action activates interest charging. Banks set their own interest rate for their credit cards. Usually, this interest rate is four times the interest rate of the National Bank of Poland – that is, they reach their maximum level. If the interest rate is 3%, the bank may set an interest rate of 12% for the credit card.

Full non-cash payment repayment is not charged with any interest. If you spent 3 thousand in a given accounting period and you managed to return them before the interest-free period expires, you won’t pay anything extra for it. Interest is automatically calculated on all cash transactions on the day they are carried out. How to set up a bank deposit.

In the case of non-cash transactions

In the case of non-cash transactions

Interest is accrued after the expiry of the interest-free period. If the debt could not be repaid on time, the bank will cancel the interest-free period and start charging interest from the date of settlement of each transaction. A positive story at the bank how to build it. The bank calculates interest on the loan balance for each day, then they are added together and presented as one item on the statement.

Suppose the interest-free period ends on June 25 and the billing period lasts until June 2. During the billing period from your credit card you spent 4 thousand. On June 23, you deposited 3 thousand on your credit card. Because you broke the contract (the whole debt was not repaid on time), the bank will cancel the interest-free period.

Interest will be calculated for 3,000 from June 2 to 23. Interest will still be charged for the remaining USD 1,000 – until the debt is repaid. Moreover, interest for the period of June 2-23 and interest for remaining debt (i.e. USD 1000) will be added to the loan balance.