Here’s what you need to know about
Credit Card interest.
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:
When you receive your statements, the details of your purchases and the amount of interest you have been charged will be clearly displayed.
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.
Example calculation
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.
Example timeline
1 Jan
Statement period begins
Your 30-day cycle begins from today
10 Jan
You make a purchase
You have 45 Interest Free Days to pay for this purchase
30 Jan
Statement period ends
It's been 30 days since the statement period began. You now have 25 days to pay your closing balance.
31 Jan
New statement period begins
24 feb
Payment due date
Your Interest Free Days end now. Pay your closing balance to avoid being charged interest on your unpaid balance from the due date.
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.
How does interest differ between Credit Cards and Charge Cards?
The key difference is that Charge Cards require you to repay the full closing balance of the statement each month, meaning no interest is charged on your purchases. However, a fee will be charged if the closing balance is not paid in full by the due date. On the other hand, a Credit Card allows you to repay your balance over time by making the minimum payment each month, with interest applied to the unpaid balance. A late payment fee will apply if you don’t meet your minimum monthly repayment obligation.
What are the benefits of having a low interest rate Card?
Useful terms
Everyone’s different, so you need a Card that has benefits that best suit your lifestyle.
Choose the 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
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.
Applying for a Card
Everything you need to know about making an application
Your credit limit
Everything you need to know about Credit Card limits
Understand fees
Some things you should know about Credit Card fees
Terms and Conditions
1. Credit Card Interest. Refer to your Card Member Agreement for a full breakdown of how interest is calculated.
