What to remember
- Debit uses your money; credit uses borrowed money.
- Interest-free treatment depends on conditions and statement repayment.
- The annual fee is not the card’s full cost.
Debit and prepaid
A debit card connects to your account. A prepaid card uses value loaded in advance. Check card fees, ATM withdrawals and foreign exchange; do not assume every transaction is free.
A credit card creates debt
The limit is borrowing, not extra income. A minimum payment may leave debt accruing interest. In the calculator, assume no new purchases to see how long repayment takes.
Interest-free has conditions
Check whether you must pay the full statement, which purchases qualify and whether cash withdrawals are excluded. Rewards and instalments may depend on the merchant or programme.
Read the statement and payment dates
Statement closing and payment due dates are different. A purchase near the closing date may have fewer days until payment than one early in the cycle. In a hypothetical cycle closing on 30 April with payment due on 20 May, purchases on 2 April and 29 April do not have the same time until payment. Check the posting date and your card’s conditions.
Illustration, not a bank offer. These figures are assumptions used to explain the calculation.
What remains after a minimum payment?
Assume an ALL 50,000 balance and a 5% minimum, with no interest or fees added yet. Paying ALL 2,500 leaves ALL 47,500. Interest, fees and new spending may increase the next balance. Minimum-payment formulas vary. Try an affordable fixed monthly payment in the calculator with no new purchases to understand repayment time.
Illustration, not a bank offer. These figures are assumptions used to explain the calculation.
Charges to check separately
Check issuance, monthly or annual maintenance, renewal and the linked account. For overseas use, ask about exchange charges and billing currency. For cash withdrawals, ask for both the fee and the interest start date. For instalments, check conversion fees, participating merchants and late-payment conditions. Zero maintenance does not remove other charges.
Questions to take to the bank
Use this list when requesting your written offer.
- How much must I pay, and when, to keep purchases interest-free?
- Which transactions are excluded from the interest-free period?
- What do cash withdrawals, FX and the linked account cost?
- What will I pay after the first year?
Frequently asked questions
Is the credit limit part of my income?
No. It is money the bank lets you borrow and which must be repaid under the contract.
Do interest-free instalments cover every purchase?
Not necessarily. Check the card, merchant, offer dates and applicable fees.
Sources and examples
Links beside specific explanations identify their official sources. Worked examples are educational assumptions, not bank offers. The bank confirms the terms for your situation.