Attention: This is how you avoid the interest rate trap
Not paying credit card bills on time is an easy but very expensive loan. With a few exceptions, the banks charge the statutory maximum interest rate of currently 12 percent for this payment deferral. But when exactly does this interest rate apply? This is not so easy. At the same time, the customers of the card issuers also have free credit.
When is the loan free? The banks do not charge interest if the bill issued at the end of the month is paid on time. This means that bank customers have free credit from the point of purchase to the payment date.
When does the loan cost? The banks always charge interest when the so-called “credit option” is used. In other words: if part of the invoice amount is deliberately left open or if the invoice is accidentally paid too late.
For what period does the interest apply? This is where it gets complicated. The banks not only charge the interest for the additional time taken, but also partially retrospectively. With some banks, this is due from the date of purchase, with others only from the date the invoice is sent. The following always applies: Interest is also due for a period that would actually be interest-free if the bill is paid on time.
How do I know what applies to me? The banks usually hide the details of these interest rate practices deep in the fine print. In the normal fee overviews, however, such subtleties are missing.
How do I avoid unnecessary interest payments? If you want to avoid being asked to pay for an invoice that has been paid slightly late, most banks can automatically initiate payment by e-bill or direct debit (LSV). The authorized bank then pays the invoice punctually at the end of the payment period.
