# How is the interest-free period for a loan calculated?

Recently, I have found the article about approval of the cash loans in the UK and I want to share another interesting info. The interest-free period for a loan depends on how it is calculated by the bank. For example, you have a credit card 100 days without interest. It should be understood that one hundred days is the maximum term of the grace period, and it may not be fixed, but only extend the first time a loan is used. Three methods are used to calculate the interest-free period by banking organizations. Let us consider them in more detail in order to have a general idea of ​​where credit cards come from with the maximum grace period.

## The first method with a non-fixed date

This is the most common method and is most often used by banks so that you can issue a credit card with a grace period for personal use. Such a scheme is rather complicated for the calculation of an unidentified person, therefore there is a calculator on the websites of banks, which makes it possible to calculate the grace period independently.

But, nevertheless, it is better to leave this work to specialists who can explain to you the peculiarity of this method of calculation. The complexity of this method lies in the fact that for each organization separately, the estimated date is different. But in some organizations, bank credit cards with a grace period for a client can be calculated individually, depending on the loan amount and its purpose.

Remember that a 100-day credit card reviews can be very different, but you just need to inquire about the scheme used by the bank in order to correctly use the credit card in the future. This is the only way you will be able to correctly use the most profitable credit cards with a grace period to your advantage.

## The second method with a fixed date

The best credit card with a grace period is the one for which the interest-free loan period begins exactly from the moment when the purchase was made. The fixed-date grace period is the most convenient and easy loan for a client. With this calculation, the exact number of days is determined during which the interest-free period is valid.

Credit card 100 days without interest received positive reviews from all customers who used this service. The convenience of such a card is a simple calculation of the expiration date of the grace period. For example, you made a purchase on July 1, which means that the grace period for repaying a loan ends exactly in one hundred days, or rather, on the eighth of October. Before that date, you need to return the money to the card in order to use the grace period. After the loan is closed, you can again use the terms of your card while making profitable purchases.

## The third method of an interest-free period for every purchase

This method of calculation is used quite rarely. But if you decide to issue a credit card with an interest-free period for each purchase separately, you will have to strictly monitor the dates of purchases and pay them in a strict order in which the expenditure transactions were made. For you, such a scheme may seem rather complicated and not convenient, but for some it will become an ideal option. Of course, you should choose, but you should always carefully read the terms of the contract so that later there are no problems and unnecessary issues with payments and overpayment of interest.