I have never paid even the slightest of attention to the numerous unsolicited mails from unknown internet marketing individuals about INTEREST FREE CREDIT CARDS. I have never believed they existed anywhere, never mind Nigeria.
That was until recently. I too now own one. I mean THE INTEREST FREE CREDIT CARD. And yes in Nigeria.
For a whole of 50 days I could do whatever shopping I want with my CREDIT CARD, up to the limit set for me by the bank, repay it plus a token N250 which is just the card maintenance charge – and there is no extra charge!
How does it work?
Let’s get to grips with some terms.
CREDIT CARD BILLING DATE:
This is the date the bank sends an e-statement of account to my email detailing my expenses. For me, my billing date is 7th February (or every month)
CREDIT CARD PAYMENT DATE
This is the latest date I must repay what I owe. This is 20 days from the billing date. My payment date is 27th February (or every month)
CREDIT CARD LIMIT
This limit is determined by the bank based on your credit ratings. Each individual will have his own peculiar limit. For a salaried worker, his net pay will determine this limit.
CARD MAINTENANCE CHARGE
Just like we used to get charged 100 for ATM card maintenance, we have a card maintenance fee for credit card. It is just N250.
LET’S LOOK AT MY SPENDING SITUATION
==> N60,000 on 1st of February buying electronics.
==> N20,000 on 3rd of February buying groceries
==> N30, 000 on 4th January buying wears
All the above expenses add up to N110,000
Exactly on the 7th of February (My billing or statement date) the bank sends me a statement of my spendings with a balance due of N110,000.
Between this billing date and the payment date (20 days) I have to repay the N110,000 plus card maintenance charge of N250. If I do that, there is no further charge. That is why it is interest free.
Now let me explain the 50 days interest free loan on this card.
Any sums I spend a day after my billing date-7th of every month for me- is not due till another billing date.
In the above shopping situation, after I received my statement on the 7th (if I have not reached my limit) I can spend more money on the 8th, 9th and so forth. The statement of this new spending will not come until the next billing date (7th of the next month or March in this case). This makes it 30days from 8th.
On this new spending, I will also have 20 days from billing date to settle my spending. That makes it 50 days in all.
What interests me is that if I can repay my bills in full when I receive them, it only costs me N250. It does not matter the amount I spend.
WHERE CAN ONE GET SUCH A CARD?
Standard Chartered Bank, Nigeria of course.
Why do you need this card?
I guess it is for each of you to answer. From the woman who operates a boutique that wants free money to re-stock, sell and repay within 50 days to that man who wants to use it to settle children’s school fees before salary comes, each of us must have a reason why we think THIS IS IT.
In my next write up, I will let you know what happens if you choose not to repay in full on the Payment Date.
Below are the posts have written so far on this blog:
Do you need assistance in getting a credit card? You can contact me. I can help.
Do I charge for my consultancy? Not even a penny.