Do you aware that your credit card has a interest free period where you can use your credit card to buy things and pay back the credit later without having to pay for the interest?
Most people will say the free interest period is only about one month. It is actually more than that if you study the credit card’s statement date and payment due date.
Let say your credit card statement date is on 15 July and the payment due date is on 30 July. You can actually enjoy up to 45 days of interest free period.
I have seen some credit card companies that allow you to have up to 60 days of interest free period.
If you have a few credit cards on hand, then you can swap around with your credit cards to purchase things at different date to enjoy the maximum interest free period.
Utilize the credit card interest free period does not save you more money but it make you have more cash on hand from time to time.
Using the above example, let say you buy a thing worths value RM10,000 on 16th July using the credit card. You only need to settle the payment on next month’s 29th or 30th.
In this case, if you put this amount of money (cash) into fixed deposit account with returns of 2% annually for one month, you will earn about Rm16 from your FD! Not bad right?
At last, please do remember, always have enough money to settle your credit card bill before payment due date or else you will need to pay more than what you have used!
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