What are balance transfer interest free days?
When you have a balance transfer on your NAB personal credit card, you’re eligible for interest free days on purchase transactions so long as you choose to pay the ‘interest free days payment’ by the due date as described in your statement.
If you do choose to pay the ‘interest free days payment’, you’ll need to make additional payments to pay off your outstanding balance transfer during any promotional period. It’s a good idea to pay the outstanding amount of a balance transfer in full before the promotional period ends. Any unpaid balance transfer amount will be considered a cash advance and incur interest at the applicable rate after the promotional period ends.
Where can I find the ‘interest free days payment’ in my statement?
On your statement is a 'Payment details' section where you’ll see an ‘interest free days payment’ amount. You need to pay the amount shown by the due date to receive interest free days on your purchase transactions while you have a balance transfer.
Where can I find the outstanding balance transfer amount in my statement?
Your statement provides an 'Account Summary' section which will show your closing balance, including your outstanding balance transfer amount.
Paying off your balance transfer
Remember, in order to pay down your balance transfer amount during your promotional period, you’ll need to make additional payments.
How are payments allocated?
When we receive your payment to your credit card, we apply it to reduce your outstanding balance.
We do this by ordering the amounts that make up your closing balance on your most recent statement, from those attracting the highest interest rate to the lowest interest rate. Then we apply your payment to reduce any amounts not on your statement in that same order.
You can read your terms and conditions for more details.
Examples of how the ‘interest free days payment’ works
Here are three examples if you have a balance transfer on your credit card.
I want to avoid paying interest on purchases
Simone has a current balance transfer amount of $1,000 owing on her NAB credit card. She makes a purchase of $200.
Simone’s account statement shows a closing balance of $1,200 ($1,000 balance transfer amount plus $200 purchase).
The ‘interest free days payment’ amount on her statement is $200 and is due 14 days after her statement date.
Simone pays the $200 on or before the due date so she doesn’t pay any interest on that purchase. Her interest free period for all purchase transactions continues.
I want to pay part of my balance transfer
Sarah has a current balance transfer amount of $1,000 owing on her NAB credit card. She makes a purchase of $200 which will register on her next statement.
Sarah pays $200 to her account before she receives her next statement. We apply the $200 payment to the current balance transfer amount of $1,000.
Sarah receives her next statement with a closing balance of $1,000 ($800 balance transfer amount plus $200 purchase).
The ‘interest free days payment’ amount on her statement is $200 and is due 14 days after the statement date.
Sarah pays the $200 on or before the due date so she doesn’t pay any interest on that purchase.
I want to only pay the minimum monthly amount
Ross has a current balance transfer amount of $1,000 owing on his NAB credit card. He makes a purchase of $200.
Ross receives a statement with a closing balance of $1,200 ($1,000 balance transfer amount plus $200 purchase).
The ‘interest free days payment’ amount on his statement is $200 and is due 14 days after the statement date. His total minimum payment is $25.
Ross only pays his minimum monthly payment of $25 on or by the due date. This is less than the full ‘interest free payment’ amount of $200.
He starts to accrue interest (at the purchase interest rate) on the unpaid balance of $175 from the previous month, as well as any future purchases he makes. This is because he hasn’t paid his ‘interest free days payment’ in full.
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