... Credit

Conditions of use

The money (principal) is lent on the basis that it will be repaid in full, or interest will be charged on the amount borrowed. The precise time a client begins to pay interest varies between institutions. Some accounts have an interest-free period of up to 55 days: a 30-day month, statement then a 25-day billing period. Others may have a billing period of 10-14 days.

If the line of credit is repaid in full before the due date on the account, no interest is charged.

If just the minimum payment, or a part payment, is received, then interest accrues on the outstanding amount from that date and there are no interest-free days in the next billing cycle - or until the debt has been cleared.