With your credit card, you can go shopping and don’t settle your account balance. “Credit cards” work similarly to loans – when you pay from a lender up to the limit set.
However, they have two advantages over conventional loans:
- Discounts and benefits: If you pay with a credit card in selected stores, you can save significantly. For example, with our Premia card, you collect premium CZK for purchases from partners. Once you collect 100, we’ll send you a $ 100 purchase voucher.
- Interest-free period: this term refers to the period during which you can pay your obligations and do not pay a crown for lending money.
The most important term is the twentieth
The length of the interest-free period is determined by the credit card providers themselves, so it varies piece by piece. While some credit cards do not have it at all, others can draw free money for up to two months. But it has a catch – the length of the interest-free period is different every time. For a Premia card it can take 21, but also 51 days. The repayment term is always on the 20th day of the following month, but it depends on when you shopped.
In the picture you can see what the interest-free period is like. But let’s explain this further on the example of Mrs. Lenka, who bought a June trip to the sea in May.
In May you shop, in June you pay
Lenka knows that the best date for credit card purchases is the first day of the new month. It can repay them only on the 20th day of the following month and will use the interest-free period in its maximum possible duration.
- On May 1, her Premia card paid a trip to the sea and circled the date of June 20.
- She must settle her accounts no later than this day, otherwise she will be charged interest for each day she had the money borrowed.
- She did not pay for the rest of the month with the credit card; This account is due on 20 June.
- On June 10, Lenka found an account statement in her mailbox and paid it immediately.
- On the 13th he will check if the money for shopping has arrived on our behalf and the 15th will be sitting on the plane looking forward to the beach.
- Thanks to her good payment discipline, Lenka had free money all the time.