You’ve probably heard that you can save money on credit card interest payments if you pay off your balance in full every month. You’ve also probably heard the term “interest free days” thrown around in relation to this. But what exactly does that mean? How does paying your balance in full monthly actually save you money? And is this a feature all credit cards offer?

Let’s take a deeper look at interest free days and their availability to cardholders like you.

What are Interest Free Days?

Interest free days are days where you can have a balance on your credit card account without being charged interest. For example, if you paid your balance in full the previous month and you make a new $200 charge, you might not be charged any interest until after your next statement due date.

The days in between are your interest free days. Generally if you have an existing balance from the previous month, you aren’t eligible for these interest free days. In that case purchases will begin to accrue interest from the moment you charge them to your credit card.

How Interest Free Days are Good for Cardholders

Not all consumers want or need interest free days. For example, you might choose a low interest credit card like the NAB Low Rate Visa and intentionally use it to finance a purchase over time at that low interest rate.

For others, interest free days give them the opportunity to use their credit cards for everyday purchases without having to worry about accumulating interest on every little charge. If they pay their monthly bill in full they can keep the convenience of their credit cards (and maybe earn rewards points or get other perks) without paying extra for each purchase.

Does Every Credit Card Feature Interest Free Days?

The short answer: No. Not every credit card features interest free days. The Suncorp Standard Visa is one example.

That said, the vast majority of credit cards do provide interest free days — usually either up to 44 or up to 55 of them.

If you think you’ll use interest free days regularly as a way to save money on your credit card, make sure you read the offer details carefully to find out how many will be available to you. And remember that it doesn’t mean you’ll get 44 or 55 days from each purchase date. If you make a purchase shortly before the statement’s end date, you might only get a few days interest free. The only way to ensure interest free days at all is to pay every monthly bill in full by its due date.