Las Credit cards They are an incredible financial tool if you know how to use it properly, since it gives you benefits when you buy products, flights, concert tickets, etc. But at the same time it can be dangerous if more interests of which you can pay, becoming a debt that can take you to the credit bureau.
So that this does not happen to you, we will explain what the 50 day rule so as not to generate interest and take care of your money.
How does the 50-day interest-free rule work on credit cards?
It is a strategy that will allow you to have 50 days of free financing when you use any of your credit cards, that is, you will not pay interest for 50 days.
Using this rule you will be able to make purchases or make payments and have these days to pay, but at the time of settling your debt you will only pay the total of your purchases or payments and not extra money for interest.
In order to take advantage of this resource, it is essential that you know the following terms:
- Cut-off date: It is the day of the month when the bank makes the sum of all your purchases and subtracts the payments you make to the card.
- Payment date: It is the day on which the bank requests payment for the use of the card.
- Minimum payment: Minimum amount to be paid to the bank to consider the status of the current credit, this payment includes the interest generated in the month.
- Payment to not generate interest: It is the amount that the bank requests not to generate interest, basically the total of all the uses that you gave to your credit cards.
Knowing this, if you do not want to pay interest on your purchases, you must make them one day after your cut-off date, so the month will run until the cut-off date of the new month and payment will be requested 20 days later, what we call payment date. and make the full payment of your purchases.
As you can see, you will have 30 days of the month, plus the 20 extra days of the payment date, which adds up to 50 days which you will have to pay the total amount of your purchases without interest.