Interest-free policy of a Credit Card

The interest-free period of a Credit Card is the period from when customers pay for/purchase goods and services to when such expenses have to be paid back to banks without having to pay additional fees/interest for such expenses. The interest-free period begins from the closing date of this month to the closing date of the next month, plus the grace period.

Currently, the banking market offers 2 "interest-free periods" for Credit Cards:

* For the maximum interest-free period of 45 days = Maximum closing time of 30 days + Grace period of 15 days.

* For the maximum interest-free period of 55 days = Maximum closing time of 30 days + Grace period of 25 days.

Here is a specific example to help you visualize: You are using a VietinBank Credit Card with a maximum interest-free period of 55 days:

The card statement period is from March 10 to April 9, the closing date is April 9. You have to pay the minimum outstanding debt on May 4 or 5 (through the automatic deduction form) and the deadline for payment to be exempted from interest is May 6. During this statement period, you go shopping according to the following timeline:

How to use the card to take advantage of the interest-free period

The number of interest-free days is very beneficial for cardholders, however, not everyone understands how to take full advantage of this policy. Here are a few tips for you to become a smart consumer:

1. Make purchases at the beginning of the billing cycle

This is the best time to pay for high-value purchases as you will receive the maximum interest-free period. The closer to the closing date of the month, the fewer the number of interest-free days you have.

2. Check your transaction history and your ability to pay

If you do not think you can repay the full amount you borrowed from the bank on time, wait to make a new purchase until the beginning of the next billing cycle.

3. Pay off the full outstanding balance before the due date

This will help you continue to enjoy the benefits of the Credit Card's interest-free period.

4. Set up automatic outstanding balance payments

This ensures that you do not miss the credit balance payment deadline and avoid late fees.

5. Pay off your outstanding balance to be exempted from interest for the next period

New purchases will not be exempted from interest if you still have to gradually pay off the outstanding balance from the previous period.

From the March 2023 billing cycle, VietinBank will adjust the interest-free extension period applied to Credit Cards to 55 days. In addition, the 2% debt collection rate is a plus point that makes VietinBank's Credit Card service the best on the market. In particular, VietinBank's Credit Card interest rate is only 18.5%/year, which is one of the lowest Credit Card interest rates of any bank.

The new automatic debt collection schedule applies to VietinBank Credit Cards on the 4th, 5th and 8th of each month.

For more information, please contact the nearest transaction office/branch or call the hotline: 1900 558 868; email: contact@vietinbank.vn.

VietinBank