Are free credit cards actually free?



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There is a popular saying ‘nothing in life is free’, so what should you make of free credit cards? Like everything, there are a few clauses but it’s worth reading into.

Credit cards are sometimes considered “free” because they usually offer 55 days of interest free on purchases, meaning if you pay back your debt within the period, you won’t be charged any interest. However, the actual number of interest free days often depends on:

  • When you make the purchase
  • When your statement is issued
  • Whether you’re carrying forward a balance from a previous statement period

Some credit cards, particularly charge cards, also require you to pay off your balance in full every month and have no rate. However, be sure to look at the ongoing fees charged, as well as how much the rates jump when you miss repayments, just to be on the safe side.

Is a free credit card the right card for you? Use the RateCity free credit card comparison tool to compare and find out more.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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