What transactions are not covered by the grace period on Sberbank credit cards? What is a grace period on a credit card: a simple explanation with examples Grace period on a Sberbank gold credit card.
The concept of a grace period, how it is calculated, what expenses are covered, examples and reviews
Want to know how to use your credit card limit for free? In this article we will tell you what a grace period is and how to repay debt without interest.
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The concept of a grace period
Interest-free (grace period, grace period) is set by the bank the period until the end of which you can use the credit card limit for free. To understand the intricacies of using this period, you need to understand the principle of operation of the credit card itself.
In essence, a credit card is a non-targeted consumer loan issued by a bank to a client at a certain interest rate. However, unlike simple loan, the interest on which is accrued immediately after receipt; interest on a credit card is accrued not on the entire limit, but on the amount of transactions made on the card.
For example, the limit on your card is 100 thousand rubles. During the month, you paid with your card twice for purchases worth 10 thousand and 20 thousand rubles. Interest for the use of credit money will be accrued only on these 30 thousand rubles, and the accrual will be made separately for the amount of each transaction, starting from the moment of its completion. If you return this money to your card account before a certain date of the next month, you will not have to pay accrued interest.
Billing period + number of days allotted in the next month until the repayment date = credit card grace period.
Banks independently set the duration of the grace period according to. For most institutions it lasts 50-60 days, although some offer cards with an interest-free period of over 100 days.
Important! If you cannot pay off the entire debt on the card during the grace period, you need to in the prescribed manner make minimum payments (usually 5-10%) to avoid the formation of overdue debts and the accrual of penalties.
How is the credit card grace period calculated?
In addition to the fact that the duration of the grace period for cards of different banks is not the same, the schemes for calculating this period also differ. The terms of use of a credit card indicate its maximum duration, while the actual number of days allocated for interest-free payment of debt is often tied to the dates of card transactions. In order not to get confused in the repayment process, you need to know which scheme is used in your bank.
1. Grace period= billing period + a certain number of days
This is the most common calculation method used by most organizations. It is directly related to the concepts of billing and payment periods.
The billing period is usually 30 days. Payments made during this period are recorded in the statement, and at the end of the month, the debt is summed up and set for repayment during the payment period (most often, 20-30 days of the next month). If before the settlement date the entire amount of the debt is returned to the card account, the accrued interest will not be presented for payment. If the debt is not repaid in full, interest is added to the remaining debt.
According to this scheme, 30 days of the billing period + a certain number of days of the next month = grace period. Its maximum duration is 50-60 days (for payments made at the beginning of the month), and the minimum is 20-30 days (for transactions made at the end of the month).
This scheme may seem confusing, so on the websites of many banks there are calculators for calculating the duration of the grace period according to.
The main difficulty in this process is to determine from what date the billing period begins. For different lenders it is tied to different dates. The easiest way is when the beginning of this period coincides with the beginning calendar month– such a scheme allows you to easily understand which transactions were included in the previous report and which will be carried over to the new period. This system, for example, is used in and in. In a number of other organizations (for example, in) reporting period resumes from the date of generation of the card account statement. You can find out this date from a previous statement or through Sberbank Online.
As a rule, the beginning of a new billing period is:
- the first day of the calendar month;
- the moment of the first transaction;
- day of card issue/activation;
- date of monthly statement.
The current payment principle should be clarified with the bank when issuing a card.
2. Grace period = date of first operation + specified number of days
For credit cards of some organizations, the new reporting period begins not from the end of the previous one, but from the moment of the next transaction on the card. So, if, after repaying the entire amount of debt on past transactions, you have not used your credit card for some time, the interest-free period will begin to count from the date of the next payment.
3. Calculation for each operation separately
This scheme is used quite rarely and is characterized by the fact that a separate grace period is allocated for repaying the debt for each operation. In this case, you must make payments in the same order in which you made purchases. This system is quite convenient if you rarely use the card, but if you actively use the card, there is a high risk of getting confused in payments.
What expenses are covered by the grace period?
Each bank independently determines the list of transactions for which the interest-free repayment principle applies. Typically these are payments in retail chains and non-cash payments. But the grace period does not apply to cash withdrawals from cards of most banks.
If you used a credit card to withdraw money from an ATM, interest will accrue on the amount withdrawn even if you repay the debt during the grace period. However, there are several tricks that allow you to receive cash from your card without paying interest.
“Card to Card” from Tinkoff
The service is designed for making card transfers, and with its help you can transfer money even from cards that do not allow transfers. The fact is that transactions of this service are perceived by card systems not as transfers, but as regular payments, so they are subject to the interest-free period.
For making translations Tinkoff Bank withholds 1.5% of the transaction amount, while the banks that issued the cards usually do not charge additional fees. In order to avoid commissions from Tinkoff Bank, you should use its card, for example “Tinkoff Black”.
Mobile application Post Bank
To use this option, you must have debit card and install the Post Bank application. Through the application, you can top up your Post Bank debit card from any cards, including credit cards. For operations up to 3 thousand rubles. a commission is withheld, and large transfers are not subject to commission.
Transfers from credit card accounts made through mobile app Bank Post are also classified as payments and are subject to the grace period.
Grace period credit card Sberbank refers to the period of use of borrowed funds without paying interest. This financial institution offers clients such a service for up to 50 days. To do this, you can issue Visa and MasterCard cards of different levels.
Sberbank credit cards with grace period
Financial institutions offer clients lending services in the form of plastic cards. Such loans are very popular among the population today, because... have significant advantages.
You can use a credit card to pay for a purchase in a shopping center or in an online store. If there is a need for Money ah, you can withdraw cash from your account.
Expert opinion
Irina Kolchina
Expert in the field bank cards Sberbank.
Ask a question to an expertBanks, in order to attract new clients, are developing various programs, which provide the owner additional features and facilitate the conditions for using the loan.
Sberbank adheres to the same policy. He has developed many cards with a grace period of 50 days, which are designed for different segments of the population.
This service is offered to young people who have not reached 30 years of age and have a permanent job with a stable wages. Students receiving scholarships, as well as pensioners, were not left without attention.
Among Sberbank cards one can highlight “Give Life”, 0.3% of each purchase made using non-cash payment donated to charity using a credit card.
Visa Gold is different favorable conditions for client. All Visa Gold cardholders receive cashback on money spent on purchases.
Sberbank also offers clients a Momentum card. It is issued instantly, is not personalized and is less protected than the others. There is no service fee for this card. The credit limit on it is limited to 120,000 rubles.
The Visa Classic card, which participates in all promotional programs, is very popular.
Bank providing loans for preferential terms, sets restrictions for the borrower. The peculiarity of such cards is that you need to return the money to your account in a short time.
What does a grace period mean on a Sberbank credit card?
Sometimes it happens that the client does not have complete information about his capabilities. Not everyone knows what a grace period is.
This is the period of use of the loan without paying interest on it.
The question often arises of how to get a loan for purchases completely free of charge.
After paying for the purchase of goods with a credit card, the borrower has the opportunity to return the money within the prescribed period without paying a fee for the use of borrowed funds. It's more like an installment plan than a loan.
Benefits do not apply to cash withdrawals. The grace period is established only for purchases from non-cash payment. When transferring money to another account, a commission is charged.
How to find out the grace period of a Sberbank credit card
Interest-free use of the loan, provided for a period of 50 days, consists of two stages:
- Reportable.
- Payment.
The first period lasts 30 days. During this time, the cardholder makes purchases by bank transfer. During the specified 30 days, interest accrual is excluded.
The reporting period is calculated from the day the credit card is activated, and not from the moment the purchase is paid for, as many mistakenly assume. It will start on the same date every month.
For ease of use and determining the grace period, it is recommended to issue a credit card at the beginning of the month.
You can find out the start date of the reporting period by choosing one of the following methods:
- View information on the PIN envelope . Usually the card activation date is indicated there.
- Seek advice from a Sberbank branch employee . He will give detailed answers to all your questions.
- Call the number " hotline» ☎ 8 800-555-5550 . You will need to provide your full name and code word.
- Using the Sberbank Online service . You need to go to the “Cards and Accounts” section and select the appropriate card. All account information will appear on the screen.
- Use an ATM . To do this, you need to place a credit card in the device, enter the code and press the “Service and other services” button. Then you need to select “Card Details”. The information can be seen on the screen or a receipt can be printed.
After 30 days, the financial institution sends the client a report on all transactions performed during this time. Here you can see what amounts were spent and when, the total debt to the bank and the recommended payment amount.
Then comes the second period, which lasts for the next 20 days. During this time, it is recommended to pay all debts on the account that arose in the previous 30 days. Only in this case will the use of borrowed funds be free. If you make the minimum payment, interest will be charged. In this way, only penalties can be avoided.
You can repay credit card debts during the reporting period, without waiting for the next 20 days.
How to correctly calculate the grace period on a Sberbank credit card
You can avoid interest on a loan only if you correctly determine the deadline for paying off the debt. But not all credit card owners know how to correctly calculate this time.
Knowing how the grace period works and defining its boundaries, you can plan your purchases at the lowest cost.
If you pay by credit card in the first of the provided 50 days, the conditions for the borrower will be the most favorable. This is especially true for large purchases. The cardholder will have a large amount of time left to return funds without paying interest. It is still easier to pay off debts in 50 days than in 20.
Let's look at an example of calculating the grace period. If the borrower used the card on the first day of the reporting period, he will have 50 days left to repay the obligation. With each new day this period will be reduced.
Let's assume that the reporting period begins on the 1st. It follows from this that the borrower can spend funds from the credit card throughout the entire month. He must return them within the next 20 days. Or rather, until the 19th of the next month inclusive.
To get your money back you can use wages at the beginning of the payment period and the advance at its end. If these funds are not enough, many borrowers use another account. To do this, they issue several credit cards.
Having carefully understood the principle of operation benefit program and having learned to competently manage funds from several accounts, you can make purchases using loans without financial losses and extend the period of free use of the loan.
If the reporting period begins on the 15th, and the purchase is made on the 25th, the payment period is reduced by 10 days and is not 50 but 40 days. If the funds are spent on the 14th, then the debt must be repaid within 20 days. Therefore, in this case there is no need to rush. It is better to postpone the purchase for 1-2 days. Thus, the period of interest-free use of the loan will increase to 50 days.
To calculate the amount of monthly or differentiated loan payments, determine the amount of the principal balance, interest payments and commissions, you can use.
Information about the amount and final date of payment can be seen in the bank’s monthly report.
The borrower can receive it in one of the following ways:
- contact the bank branch where the account was opened;
- receive letters to your email address.
The client indicates the option that is convenient for them in the application when receiving the card. It can be changed in the future by submitting an appropriate application to the branch of the financial institution.
If no transactions were made on the account during the month, the report is not generated. If all obligations have not been paid during the grace period, interest will be charged on the remaining balance. Their amount will be displayed in the next report.
What is the interest rate on a Sberbank credit card after the grace period
The rate for using borrowed funds varies depending on the terms of account servicing. Sberbank clients can count on an individual approach from the lender. The interest rate can range from 19 to 35% per annum, and sometimes it is completely absent.
If the cardholder is not a client of Sberbank, he is subject to standard conditions service. Interest rate is 33.9% per annum.
Grace period debt on a Sberbank credit card
Sometimes, due to circumstances, the client is not able to repay the debt in full on time. If there is a delay in the grace period, there is no need to despair. A minimum payment of 5% of the total debt must be made.
If it is not paid, the fee for using borrowed funds will increase to 38%. The lender will also charge a penalty of 0.1% for each day of delay.
How to use a Sberbank credit card with a grace period of 50 days
To manage borrowed funds optimally and without financial losses, you need to adhere to some rules for using the account. It is necessary to repay the entire debt on time, and not the minimum payment. It is recommended to make purchases at the beginning of the grace period and correctly calculate the deadline for paying all obligations.
How to cash out a Sberbank credit card without losing the grace period
It is impossible to withdraw money from your account completely free of charge, but it is quite possible to reduce the cost of the service. To do this, it is recommended to first transfer the required amount from the card to an electronic wallet, and then cash it out. This way you can reduce costs by up to 1.75%.
Fee for withdrawing cash from a preferential Sberbank credit card
If the account owner still needs to withdraw money, this will incur some costs. At a Sberbank ATM you will have to pay a commission of 3%, but not less than 390 rubles. The third-party device provides a 4% rate with the same minimum.
When the grace period does not work
A fee for using borrowed funds from a credit card is charged in the following cases:
- transfer from one account to another;
- cash withdrawal.
If you need money, it is better to apply for a consumer loan from Sberbank. This will help you avoid the cost of paying high interest rates, penalties and fees for cash withdrawals.
Advantages and disadvantages
Sberbank credit cards with a grace period have certain advantages:
- no interest accrual for 50 days;
- a large network of ATMs is offered for service;
- free service providing information via SMS messages;
- accessibility to various segments of the population;
- the opportunity to participate in other programs;
- large credit limit.
But they also have disadvantages:
- paid cash withdrawal and transfer to other cards;
- interest rate is higher than consumer credit;
- difficulties in calculating the grace period;
- unfavorable conditions for storing own funds.
For credit cards, banks provide a grace period, which is also commonly called preferential. This option is available to holders of any issued in the Russian Federation. When this service is used correctly, card expenses are kept to a minimum. If the holder repays the debt on time, he is exempt from paying interest to the issuing bank.
What is a grace period
After issuing a credit card, the bank places a credit limit on its balance sheet - borrowed funds that the holder can use in accordance with the terms of the agreement concluded with the bank. Magnitude credit limit in most cases it is set individually for each client separately. For the use of borrowed funds, the client pays interest to the bank - the rate is specified in the contract.
Along with the credit limit, the bank also sets a grace period - the period during which the client uses borrowed funds for free. Like the size borrowed money, the duration of the grace period is set for each client individually.
To ensure that the grace period is not interrupted, the client must use the card in strict accordance with the clauses of the user agreement. Standard requirements: use borrowed funds only for the purpose of making non-cash purchases and timely payment of the minimum mandatory payment (MOP) on the card.
Therefore, within the grace period, the user pays exactly as much as he spends on the card. On the day following the end of the grace period, credit organisation begins to accrue interest on the remaining debt.
How to use the grace period on a credit card
Russian banks use two schemes for calculating the grace period. Each of them does not cancel the main condition - free use of borrowed funds within the period stipulated in the contract.
How to calculate at Sberbank
The most common scheme is when the grace period consists of an accounting period and a repayment period. This scheme is used by most Russian banks, including Sberbank. Sberbank has a grace period of up to 50 days, during which the holder uses the funds for free - 30/31 days (reporting period) and 20 days (for repayment).
Example: the user agreement states that the reporting day for the card is the 5th of each month. Before the 5th day of each month, the user makes purchases and pays the bank, which must be paid for in the next 20 days. That is, the deadline for full repayment debt will be on the 25th day of the month. Purchases made outside the previous reporting period are carried forward to the next reporting period.
Between the fifths of two months, 30-31 days pass, during which the user spends the borrowed money. Next comes the deadline for full repayment of the debt - until the 25th. After repayment of the debt incurred during the past reporting period, the grace period resumes.
The scheme seems complicated only at first glance, especially when calculating the amount of debt that needs to be repaid. To ensure that the grace period is not interrupted, the debt incurred on the 5th is paid off (following the example above).
How to calculate at Alfa-Bank
Another scheme, used, in particular, by Alfa-Bank, is not to divide the grace period into separate parts. Nothing fundamentally changes here, but this scheme is more understandable for the user.
Example: the bank has set a grace period of 60 days. The client used the funds on May 5, and according to the terms of the agreement, he must fully repay the debt by July 5 (+60 days). Then, he spent more of his credit limit, and the most recent purchase was made on July 2.
In this case, the maximum grace period is provided only for the first purchase, which was made on May 5. For all other expenses, the duration of the free period will be proportional to the number of days remaining until the date of full repayment of the debt. Therefore, expenses made on July 2 must be reimbursed to the bank within the next 3 days - until July 5.
The reporting event here is the first purchase, for which the longest grace period will be provided. For all other purchases, the length of the grace period will decrease accordingly as you approach the date of full repayment of the debt.
The deadlines until full repayment of the debt are indicated in the user agreement or in PIN envelopes, if the PIN code is issued in this way. Theoretically, these deadlines can be shifted, but only after the next amount of debt has been fully repaid. Some banks not only suggest shifting the deadlines, but also allow an increase in the duration of the grace period if the client does not commit serious violations in the process of using the card.
Minimum required payment
Another condition for the possibility of using the grace period is timely payment minimum payment- percentage of the resulting debt. In most cases, it is 3-5% of the debt amount, but not less than a certain amount in monetary terms.
Minimum payment is paid once a month, regardless of the duration of the grace and reporting periods. Violation of this rule will lead to the suspension of the grace period and the calculation of interest on the debt accumulated by that time.
The holder must independently mark the date for making the minimum payment. For example, this could be every second week of any month, or every 14-15th day of the month. The minimum payment does not have to be a certain percentage of the debt. The main thing is that the amount is not less than the minimum established by the bank. There are no other restrictions here.
: A grace period with debt repayment dates is optional. That is, the user does not have to wait for a specific date to make the next payment. After making a purchase, the debt on it can be repaid on the same day - everything here is at the discretion of the client. Due to the grace period, they provide the client with something like a deferment in fulfilling obligations.
The grace period, or as it is also called interest-free, is 50 days that are allotted to the borrower for purchases with payment by credit card and further repayment of the debt. In this case, there is no need to pay interest under the agreement.
There are also limits here: the first is a limited amount of funds, because you can only buy for an amount within the credit limit.
The second limitation concerns the fact that funds cannot be withdrawn from the card, in otherwise the interest-free period will be reset to zero, and the client will in any case need to pay commission and interest. We'll talk about how to avoid paying interest on a Sberbank credit card and what you need to know to do this.
How to do the calculation correctly?
To do this, we will arrange a short debriefing, because the loan agreement contains a lot of terms that the client may not always interpret correctly. So, the problem of calculations is usually faced by beginners who have not yet understood the essence of the scheme and have just concluded an agreement.
This happens because out of the promised 50 days for all credit cards Sberbank will not be able to make purchases throughout the entire period. Only 30 days are allotted for this, and 20 are left to pay off the existing debt.
The reporting period is the time when the client is allowed to make purchases within the credit limit. This is 30 days, during the last of which a card statement will be generated and sent to the borrower.
The payment period is the remaining 20 days within which payment can be made. In total they give 50 days, about which so much has already been said in the advertisement. To understand how to calculate the grace period for a Sberbank card, let's look at the problems.
Simple example
If we assume that the date of generation of the card statement is April 1, then the 50 days of the grace period ends on May 21. If the debt is repaid before this date, the borrower will not have to pay interest.
In a situation where a person makes his first purchase on April 28 for the amount of 10 thousand rubles, the duration of his grace period will be only 23 days.
If the second purchase on the card in the amount of 5 thousand is made on May 1, its grace period is shortened by a day and will be exactly 20 days. This example shows that if the borrower manages to pay on time, then at an interest rate of 25.9% he will be able to save 234 rubles.
The fact is that the payment period can never be less than 20 days. As a result, the sooner you make a purchase, the more days it will take to pay off, and the longer you delay shopping, the fewer days you will have to pay off (but never less than 20).
For comparison, if you pay for a purchase with a card on April 6, the duration of the interest-free period is already a full 45 days, although our final repayment date has not changed and still falls on May 21.
A person can repay a debt on any day of the calendar (throughout April in our example), without reaching the last day when it will still be possible to pay off without interest.
The nuances of using plastic
If you deposit more on the card than was spent, the client gets the opportunity to make purchases with his personal funds. As soon as the payment is made, the credit limit is renewed again and will be valid for the next month. Each credit card holder client receives an SMS message stating:
- the amount of total debt that is formed for the reporting month;
- the amount of the mandatory payment that will need to be made in any case, even if the client does not plan to meet the interest-free period;
- the date by which funds must be deposited.
If the SMS does not arrive, you can find out the date and amount of the payment in your personal account in the Sberbank Online system.
Analysis of popular myths regarding the grace period
We have already touched on the first myth a little. Customers believe that in any case they have 50 days to repay from the date of purchase. But as we have already discussed above, the earlier the purchase, the longer the time is allotted for repayment and vice versa - the later you pay for something with a card, the fewer days will be allotted to repay the money spent.
In practice, after 30 days, a spending report will be generated; the remaining 20 days will allow you to pay without having to pay interest. Please note that the date the statement is generated is not tied to the beginning of the month, but depends on the activation date of the plastic card. Therefore, adhere to this scheme for using a credit card:
- make purchases and pay for services a month after activating your plastic card;
- wait a month and receive a statement within 30 days;
- You have 20 days to pay. We are talking about a 50-day interest-free period only if the goods were paid for in the first days after activation of the plastic card. The closer you get to the end of the month, the shorter the billing period becomes until it reaches a minimum of 20 days.
The second myth is how you can allegedly use the grace period on a Sberbank card - if you cash out money from your account and then manage to return it before the end of the interest-free period, then you will not have to pay interest on the agreement. This is wrong.
Cashing out money even through the network’s own ATMs leads to a commission in the amount of 3% of the transaction amount and cancels the grace period.
Bottom line
Even if for some reason you didn’t meet the deadline, don’t panic. In the end plastic cards created so that you can pay the minimum mandatory contribution and thus you will bypass fines and late fees.
You can top up your card in a number of ways, from simply depositing money through a terminal or bank cash desk, to performing the operation remotely via Personal Area by sending a short USSD command or something like that Alternative option– SMS message to number 900.
More about the map
- 100 days Without interest on the loan;
- Limit loan up to 500,000 rubles;
- Interest rate from 14.99%;
- Price annual maintenance from 1190 rubles;
- Free deposit and withdrawal of cash;
- Free Internet banking;
- Free mobile banking.
| Card from Tinkoff Bank | Apply for a card |
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- 55 days Without interest on loan;
- Interest rate from 12%;
- Installment plan at 0% up to 12 months;
- The cost of annual maintenance is from 590 rubles;
- Minimum payment up to 8%;
- Free card replenishment;
- Bonus points for spending on the card;
- Free Internet banking;
- Free mobile banking.
| Map from Eastern Bank | Apply for a card |
More about the map
- 56 days Without interest on the loan;
- Limit loan up to 300,000 rubles;
- Interest rate from 11.5%;
- Issuance of passport in 5 minutes;
- Free Internet banking;
- Free mobile banking.
| Card from Raiffeisenbank | Apply for a card |
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- 110 days without interest on the loan;
- Limit loan up to 600,000 rubles;
- Interest rate from 23.9%;
- The cost of annual maintenance is free;
- Cashback up to 5% on everything;
- Free Internet banking;
- Passport registration.
| Card from UBRD Bank | Apply for a card |
More about the map
- 120 days without interest on the loan;
- Limit loan up to 300,000 rubles;
- Interest rate from 29%;
- The cost of annual maintenance is free;
- Cashback 1%;
- Free Internet banking;
- Free mobile banking.
 | Installment card "Conscience". |
One of the most convenient financial instruments used by most Russians is credit cards. These products allow you to quickly and effortlessly receive large amounts of money.
It is very profitable to use carats, because for most of them the financial institution offers a favorable grace period. To minimize expenses, you need to know how to calculate the grace period on a credit card.
Current schemes
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By grace period, a financial institution means a certain period during which the client can use the funds of the financial institution without paying a commission.
Near 40-50% from the entire number of financial institutions provide a similar service. But before you use it, you need to clearly know what operations it includes, and also be able to determine the duration of the grace period. Each financial institution has a different process for using funds.
Most financial institutions use two main grace period calculation schemes:
| 1 diagram |
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| 2 scheme | This scheme involves installing credit institution a certain number of calendar days, after which all card transactions are considered preferential. Mostly the duration of such a grace period is 60 days from the moment of the first transaction. |
How to calculate the grace period on a credit card without errors
Each financial institution has special rules for calculating the grace period. Knowledge of the main features of calculating this period allows you to profitably use a credit card without paying interest on the use of bank funds.
Set deadlines
In order not to miss the grace period, you first need to know about its start time. Most bank clients are mistaken in thinking that the grace period begins from the moment of registration, however, the activation of the interest-free period occurs from the moment of its activation.
But not all financial institutions count the grace period from the moment the card is activated; in some cases, the grace period begins on the first day of the reporting month. The rules for calculating the period for preferential repayment are fixed in the agreement when issuing the card.
Moreover, the grace period may not include all card transactions.
Most often, it does not apply to operations such as:
- cashing;
- transfer to other accounts.
When performing such operations, the financial institution will charge interest for the use of funds and retain a commission. To cash out funds while maintaining the grace period, you must make a transfer to online wallet. For such an operation, a percentage for the transfer is deducted, and no cash withdrawal fee is charged.
Repayment of the card debt must be made by the client before the end of the interest-free period. Standard period for interest-free repayment lasts approx. 50-55 days. By setting a longer grace period, the bank implies the obligatory payment of a monthly minimum payment and repayment of the entire amount of the debt.
To prevent the occurrence of arrears on the account, repayment must be made at least three days before the expiration date. This is due to the fact that in some cases transactions can be processed within 3 days and also be subject to various types of checks. The credit limit is renewed after the debt is repaid.
Examples of formulas
Financial institutions use several different calculation formulas to determine the length of the grace period.
Below are the most popular calculation methods:
| Month + |
|
| Fixed term |
|
| Month + next |
|
| Moment of card activation + |
|
| Reporting date + |
|
Debt repayment
The loan funds must be returned to the account before the deadline set by the financial institution. If you use the card and do not pay off the limit, the financial institution will charge interest in the amount of the base rate provided for in the agreement.
In most cases, the day of repayment of the debt amount and the day of crediting funds to the set do not coincide when depositing funds:
- through an ATM;
- by transfer from another bank;
- using the post office.
When using such methods, funds must be transferred to the card account in advance. If there are no funds at the time established by the bank, the financial institution considers the conditions for providing an interest-free period to have been violated and charges a fine, as well as interest for use.
Features of the service
The grace period on the card is an excellent opportunity to save significant money on interest payments. This service is provided by most financial institutions and involves setting a certain period for the client during which the bank does not charge interest for the use of loan funds.
Start and final
In most cases, the countdown begins from the moment the credit card is activated. Financial institutions count the period lasting for 50-55 days. However, some financial institutions take as a basis a separate day of the month on which the purchase was made. This provision is fixed in the contract when the card is issued.
It is important to take into account that the grace period does not apply to all types of operations.
Additional conditions do not apply if:
- cash withdrawal;
- transfer to the accounts of other persons;
- transactions involving the receipt of cash.
When performing such operations, interest for the use of funds is accrued immediately. When withdrawing cash, the bank additionally provides a commission in the amount of from 2 to 5%. Interest charges on withdrawals can be avoided when withdrawing money to an electronic wallet.
How to use the allotted time
For use credit funds In order to maintain the budget, it is necessary to repay the entire amount of debt within the time period specified in the contract. With this attitude, the grace period will be preserved and, in addition, it will be possible to avoid paying interest on the loan amount.
When making the minimum payment, it is worth considering that its size should be about 50% from the amount owed at the end of the month. The timing of the payment directly depends on the conditions stipulated in the agreement with the financial institution.
Advantages and disadvantages of the grace period
This service has a number of positive advantages, but, like any other financial instrument, it has its certain disadvantages.
The advantages include:
Disadvantages of this financial instrument are as follows:
- short period of interest-free lending;
- not including individual operations in ;
- the need to fully repay the debt.
Precautionary measures
The main precaution when using credit funds is to comply with repayment deadlines. This is necessary in order to avoid paying significant interest on the loan. It is worth paying off the debt not on the last day, but several days earlier. This measure will help avoid late payment or delays due to technical reasons.
Additionally, you need to clearly know the amount of debt. When depositing a smaller amount into the account, the financial institution will calculate the conditions loan agreement violated and will charge interest as well as a fine. When depositing money into an account, you must also take into account the size of the transaction fee from the financial institution.
You should not allow late payments. Even minimal discrepancies have a negative impact on credit history and in the future may cause disagreements with the bank.