Interest-free credit card: bank conditions

The number of banks is growing day by day and all the struggles for customers. Credit cards are a very convenient banking product and bankers use various advertising and marketing mechanisms to promote them. As a rule, creditors try to increase the free use of funds, which is called the grace period.

During this time, no interest is being used for using borrowed funds, but is it really? The offers are very attractive and in some cases, the interest-free credit can reach 200 days. What is a catch and is it really good for the average person?

How the grace period is calculated

How the grace period is calculated

The interest-free or soft loan mechanism has been used for a long time and works as follows:

  1. An interest-free credit card opens at the selected bank or arrives by mail.
  2. The settlement period begins – the period for which you buy the card; the bank, in turn, checks the costs and usually provides 30 days. The beginning of this period is often considered the moment of card activation (sometimes it is the starting point of the first card operation).
  3. The credit card grace period will also begin. During this period, the debtor is obliged to return to his creditor any funds provided. In order not to pay interest on the loan, it is sufficient to return the entire amount borrowed on time.

The period of interest-free drawing of bank finances is summed from the grace and settlement periods so that the amount is at least 50 days.

When you need to pay interest

When you need to pay interest

In cases where the borrowed funds cannot be fully compensated, the Bank will start to charge interest on the money spent during the billing period. The end of the grace period is the date of the minimum payment, which is between 5 and 10 percent of the total amount of the debt, plus interest on the use of the loan.

At the end of the first equalization period (thirty Todays), the second and the following begin. It will act at the same time as the payment term. This means that if the debt from previous purchases is paid in time, the card can be used for a new one.

Specificity of calculations

Determining the amount of accrued interest directly depends on the length of two periods: payment and settlement. For a simpler explanation and understanding, it is better to resort to a specific example.


The start of the billing period is considered to be the moment if the credit card is accepted with an interest-free period in the bank or in some cases its activation. If we assume that the card activation date was March 1 and 30,000 dollars were spent per month, then April 1, ie after 30 days, will be the end of the first billing period.

The bank will summarize and find out how much money has been spent over the last month and provide the client with a debt statement. In this case, it will be 30 000 dollars. Information can be provided in several ways:

  • SMS alerts;
  • Internet banking;
  • calls to the call center of the bank.

This will be followed by a payment period. Suppose it’s 20 calendar days. It turns out that it will end on April 21st. Summing up both periods, we get 51 days, which bankers represent as a credit card or interest-free period.

It turned out that a client who is of the need to pay interest on the use of bank money will have to pay all costs by April 21. This does not mean that the entire amount must be returned at the same time, it can be divided into several payments, the main thing is that by April 21, the entire amount should appear on the card (30,000 dollars in this example).

If you need more resources

If you need more resources

It is important to note that a credit card in the non-interest period does not prohibit further use of credit facilities at the time of grace. If the credit limit allows, of course, you can continue to purchase with a credit card. If 5,000 dollars are needed in addition to the borrowed funds and are on the card, the client has the right to use them, but in order not to pay interest, it will be necessary to return not 30,000 dollars, but in April everyone borrowed 35,000 dollars.

If you pay off the debt, it doesn’t seem to be possible, it doesn’t matter. Until April 21, the client will need to make a minimum payment amount. In some cases, it ranges from 5% to 10%.

For this example, assume that the minimum payment should be 10% of the amount owed. At the end of the grace period, at least 3,000 dollars must be credited to the credit account. All information is usually contained in statements that banks seek to provide to their customers in writing. They reflect transactions for the billing period, ie until 1 April.

The following calculation deserves special attention. The period will run from 1 April to 1 May. Until April 21, two periods overlap each other. This means that if the debt is not paid in full by 21 April, the minimum payment amount will be calculated taking into account the total debt from 1 May.

Under the option under consideration, the first 30 000 dollars were exhausted, of which 10% was paid as a minimum payment. After April 1 another 5,000 dollars were withdrawn from the card. The credit card debt will thus be 32,000 dollars from 1 May, and the minimum repayment will, therefore, be 3,200 dollars. You will need to deposit by May 21st.

Banking seems to be very attractive offering loans with a long grace period of one hundred days or more. The first billing period for such cards, as in the first case, is 30 days and the client can repay the bank debt without any special interest within the next seventy days.

Nominal interest rate and APRC – how do they differ?

When applying for a loan or credit, the client will sooner or later get familiar with the concepts of nominal interest rate and APRC. Both values, listed above all in the contracts signed, is very important information for the borrower. Most Poles do not yet realize that the nominal interest rate is not the same as the APRC.

It is known for a long time that most financial institutions

Carefully camouflage actual costs – only to encourage the customer to take advantage of the loan. When taking a loan, we should also be interested in how much we will have to pay for the loan next to the amount requested and the loan period. The loan price is determined by two values ​​- nominal interest rate and real interest rate.

  • APRC – the Actual Annual Interest Rate, which expresses the percentage, total cost of credit against the sum borrowed by the customer;
  • The second concept is RSO – i.e. the Annual Interest Rate or the nominal interest rate being one of the costs included in the APRC.

Knowing how these two interest rates differ significantly makes it easier to make a loan decision.

Nominal interest rate

Nominal interest rate

Many people who take out a loan or credit wonder how it is that an offer that had virtually no cost – brings a lot of additional fees. People who are looking for financial support should pay attention to the interest rate for a given product.

By sticking to the definition, nominal interest is the value by which the bank (or loan company) calculates the amount of interest. It is worth noting that the nominal interest rate may not exceed four times the applicable Good Finance loan rate of the National Bank of Poland. Sometimes nominal interest is deliberately given as the first before real by banks, thus being a lure for customers.

Of course, the lower the interest rate, the better, because then the cost of credit will be lower for us. However, this does not mean that a low-interest offer will be the most advantageous for us. It may happen that a given installment loan with a tempting, low-interest rate will be more expensive for us because the lender will apply other, higher costs.

APRC and nominal interest rate


Everyone who is interested in taking out a loan or borrowing should know the basic difference between the APRC and the nominal interest rate. Without this, we will not understand how much it will cost us to use the bank’s credit services.

The abbreviation APRC indicates the actual annual interest rate. In short, the APRC is the sum of all loan costs. It also includes nominal interest. Importantly, the APRC is given in percentage terms. If we want to compare the two indicators, then first of all – the APRC is a more capacious indicator. Secondly, it is an indicator containing more and more important information for the client. The APRC includes:

What’s more interesting – not always lower APRC means cheaper credit. When choosing the right loan, you should pay special attention to:

  • installments – i.e. the burden resulting from the commitment;
  • On the APRC;
  • at the total cost of the loan – which every bank will give us in response to our inquiry. In this category, we include Nominal interest rate on the loan, commissions, preparation fee, all administrative costs and possible costs of loan insurance.

Credit Information Bureau Alert – what is it and how much does it cost?

There is no denying that you often hear about various cheats. It can be said that you need to be on guard constantly. In terms of details, there is a lot to say (among the scams there is even a lot of credit scams)
Are you wondering what to do to protect yourself against fraud? In principle, there is nothing to think about – just time to think about the Credit Information Bureau alert.

If you do not know what is being said, then everything will become clear.

What is the Credit Information Bureau alert?

What is the Credit Information Bureau alert?

It’s time to say what a Credit Information Bureau alert is. However, before you think about it, you should think about what the Credit Information Bureau is. First of all, you need to know that the Credit Information Bureau.
The Credit Information Bureau can be defined as the main source of credit and business information. More specifically, the Credit Information Bureau is responsible for collecting and sharing information on the implementation of credit and financial obligations.
It can also be added that the Credit Information Bureau works for the entire banking system in our country.

You probably already guess what is meant by Credit Information Bureau alerts, but let’s get to the details. Simply put – a Credit Information Bureau alert is an effective protection against loan fraud. You ask yourself, how does the Credit Information Bureau alert work?

Let’s start with the fact that we are all exposed to the loss of an identity document or theft of personal data (also a Credit Information Bureau alert can be useful to everyone).
What to do – phishing scam = sending an SMS and email.

Price list for Credit Information Bureau alerts

Price list for Credit Information Bureau alerts

Wondering how much you have to pay for alerts? Alerts are not expensive and most importantly, we are talking about effective help (no matter how effective, the most important is always). You also need to know that you have a certain choice – you can order alerts or opt for the package (alerts and additional services). As far as the price list is concerned, alerts cost USD 24, while the package should be paid USD 99. What’s more, the package price is promotional.

Probably the question immediately arose, what is meant by additional services? If you are interested in additional services, the best solution is to get to know the Credit Information Bureau website as soon as possible.

Who is benefiting from using alerts?

Who is benefiting from using alerts?

Are there any groups of people for whom the use of alerts is particularly recommended? There is no doubt that this is a question that may have different answers. As for specific groups, you should definitely indicate rich and lonely people – such people seem an easy target (but in total everything is possible).
After all, age can also be significant.

It may be worth returning to the Credit Information Bureau alert definition. It just so happens that Credit Information Bureau alerts protect not only when trying to extort credit. In short – you can also count on notifications when someone checks you in the BIG InfoMonitor Register of Debtors. You don’t know what is meant by that? If so, it is best to refer to an example – a good example is even a phishing loan subscription (not all thieves need to care about great profits).

In short, it is generally unknown who pays off to use alerts.

What are the problems with repayment? Debt repayment issues

The period of low-interest rates lasting despite the accelerating inflation in 2019 changed the perception of credit among average consumers.

The loan turned out to be a cheap supplement to consumer needs. But where are the more and more common problems with paying off liabilities and how can you counteract them so as not to worsen your creditworthiness?

Debt repayment issues

The problem with liabilities is primarily due to the revaluation of creditworthiness. It may happen that you take out a loan, and suddenly you face degradation of position or a change in the standard of the contract. The main problem of borrowers in Poland resulting from most industry reports is cyclical financial problems.

The reason for cyclical financial problems is unexpected expenses in the home budget focused on treatment, urgent renovation. Added to this is the easy availability of credit, even in supermarkets, non-bank institutions operating on the Internet, seasonally in banks.

Legal income at the minimum wage level entitles you to take not only one cash loan, no collateral, no guarantee, without the consent of your spouse, and even without setting up a separate account at a bank branch.

Other reasons for problems with loan repayment are the complete lack of expenditure planning after signing the loan agreement, loss of employment, change of employment relationship, just too low income but giving positive creditworthiness. The structure of liabilities in Poland is most often divided into 1 debt, an average of 2, and a maximum of 8 and more, but these are households in a real spiral of debt.

Many debts at the same time, is it always a problem?

Many debts at the same time, is it always a problem?

It is best not to allow more than one debt to arise at the same time. However, if you find yourself in a similar situation, apply for consolidation and not necessarily in the bank where you have liabilities, but in the institution as cheap as possible, with credit holidays, without great requirements for securing the contract.

In Poland, a larger loan for repayment over a year is presented as a luxury good. Few people have real creditworthiness to sign a contract with a bank. Alternative sources of debt are non-bank institutions, employers’ families, pawnshops awaiting the transfer of property pledge, usually quite valuable.

Maintaining positive creditworthiness

Problems with debt repayment can be solved by knowledge of restructuring techniques and law, in particular the Consumer Credit Act, which clearly explains the limits in determining non-interest costs. Banks and parabanks no longer impose higher costs for consumers.

Quick credit repair and debt consolidation are an opportunity to get out of financial problems unscathed by creditworthiness. This is most important if you plan to use the potential of cash loans in the future.

Where to look for a 24h loan? What are the costs?

The non-bank loan market is characterized by, among others, high vigilance in responding to the needs of potential applicants. One of them is undoubtedly the possibility of obtaining a loan 24 hours a day and preferably 7 days a week. Such needs are probably dictated by the changing lifestyle of the society as well as the chronic lack of time. So where do you look for loans available around the clock and what costs should be prepared for them?

24h loans – the most important aspects

24h loans - the most important aspects

One of the basic features of 24h loans is the maximally simplified application procedure. Due to the nature of this type of obligations, the only way to use them is through a device with Internet access and a valid ID card. It is important, however, not to understand the value of “24h” completely literally. When deciding to submit an application, there are several additional aspects to consider.

Application procedure and payment

Application procedure and payment

Loan companies that grant 24h loans have a direct impact on the time of receipt and verification of applications. It should also be remembered that in the case of customer service outside of office hours, loan decisions are made as a result of an automated process. All this really affects the possibility of obtaining a positive examination of the application at any time during the day and every day of the week. 

Unfortunately, the speed at which funds are credited to the borrower’s account no longer depends on the lending institution. Particular attention should be paid to the list of banks where the lender has their accounts when choosing a 24h loan offer. If the applicant’s personal account is in a banking institution that is not on the lender’s list, it may take up to several days for the funds to be booked. It all depends on the hours of incoming sessions in the bank and whether the loan was taken on the weekend or on a business day.

It is worth choosing lenders who have bank accounts in the same banking institution, because you can then count on booking funds as part of a real-time internal transfer. In addition, if the loan was granted on a weekend after 20, it will be possible to withdraw money only within the same bank.