Understanding
Credit Card interest

Here’s what you need to know about
Credit Card interest.

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What is Credit Card interest?

If you have a Credit Card, you’ll be charged interest unless you repay the full closing balance by the statement due date.

The amount of interest you will be charged depends upon:

  • The interest rate of your Credit Card
  • The amount you spend
  • When you spend it
  • When you pay your Credit Card bill

 

When you receive your statements, the details of your purchases and the amount of interest you have been charged will be clearly displayed.

 


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How is interest calculated?

Interest is applied to your closing balance at the end of each day and then totaled up to calculate your monthly statement balance1.


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What are ‘interest free days’?

Interest free days refers to the time between purchasing something with your Credit Card and when interest is applied to that purchase. Depending on your Card, this can be up to 25 days following the end of your statement period.

To maximise your Credit Card's Interest Free Days, make your purchase on the day a new statement period begins and pay the closing balance by the due date shown on your statement.


In the example below, the Credit Card has 55 Interest Free Days and assumes that the previous two month's balance has been paid in full.


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Does my interest rate fluctuate?

From time to time, we may review the interest rate on any of our products. We will make sure that you are notified well in advance if the interest rate on your Credit Card is changing.

 


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How does interest differ between Credit Cards and Charge Cards?

The key difference is that Charge Cards require you to pay off the closing balance in full each month, meaning no interest is charged on your purchases. However, a fee will be charged if the amount owing is not paid off in full. On the other hand, a Credit Card allows you to pay off your balance over time, with interest applied to the unpaid balance.

 


Low interest benefits

What are the benefits of having a low interest rate Card?

  • If you choose to carry a balance from month to month, a low interest rate Card helps reduce your cost of borrowing.
  • With less interest charged, you can pay down your balance sooner.
  • Allows you to enjoy a low ongoing interest rate for any unpaid balance.

What do you want from a Credit Card?

Everyone’s different, so you need a Credit Card that has benefits that best suit your lifestyle. Choose the Credit Card with benefits that best suit you.

Rewards

Earn Membership
Rewards points from
everyday spending

Frequent Flyer

Maximise rewards
for every trip

Platinum

Enjoy premium
benefits and service

Balance Transfer

Roll your Card
balances into one

No Annual Fee

Save more with no
annual fee

Live life to the fullest with American Express Membership

As an American Express Card Member, you get to enjoy travel benefits that take you further, points that are more rewarding and services that open more doors around the world.

Want to learn more about Credit Cards?

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