January 2019 eCommuniqué

We’re changing the way we calculate credit card interest

01 January 2019

We’re changing the way we calculate credit card interest

New legislation has been passed that will change the way we calculate interest on ‘purchases’ for consumer credit cards with interest free days from 1 January 2019.

What’s changing?

From 1 January 2019, members who do not pay the full closing balance shown on their credit card statement will only be charged interest on their purchase balance from the day after the due date shown on their statement.

How this change may affect you?

The new way of calculating interest on purchase balances will affect members in different ways.

  1. If you happen to miss a full payment and pay interest on your purchase balance, this will affect you. However, the good news is that this change may mean that you’ll pay less interest as you will generally only be charged interest on your purchase balance from the day after the due date shown on your statement.
     
  2. If you pay your credit card balance in full every month by the due date, you’ll continue to pay no interest on your purchases balance.
     
  3. If you’re already paying interest on an existing purchase balance, this change will not immediately impact you. You’ll continue paying interest as you do today until you pay the full closing balance as shown on your credit card statement by the due date; therefore, regaining the benefit of interest free days.

For more information on the new interest calculation method you can call us on 1300 13 23 28 or email us at service@australianmilitarybank.com.au.

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