Your credit card interest charging is changing and you may be better off
New legislation is changing the way we calculate interest on your credit card. This impacts interest on your purchases and interest free days period. You may be better off with these changes. From 1 January 2019, members who do not fully pay the closing balance shown on their statement will only be charged interest on their purchases from the day after the due date. These changes may or may not impact you, depending on how you use your credit card account. BankVic is beginning to implement the interest calculating changes prior to 1 January 2019. This will begin to take effect from the statement cycle commencing 16 December 2018.
Prior to Change and up to 15 December 2018
Impact of change from 16 December 2018
If you did not pay the full closing balance shown on your statement by the due date, you would incur interest from the date of purchase when it was made and charged to your account and until the full closing balance is paid by the due date (shown on later statements).
If you do not pay the full closing balance shown on your statement by the due date, interest on the remaining purchase balance will be charged from the day after your due date and until the full closing balance is paid by the due date (shown on later statements).
Silver Credit Card example*
*For other BankVic Credit Cards the due date is 10 February (55 days interest free period)
You will lose the benefit of interest free days once you carry a balance past your due date. Once interest begins to be charged, any new purchases will not receive an interest-free period. The interest free period will not be re-instated until the balance is paid off in full. You will regain the benefit of interest-free days on your purchases by clearing any outstanding balance plus interest on the account by the due date or at any time within the statement cycle.
BankVic has now implemented the law reforms relating to the charging of interest on credit cards. There was an error made during the implementation. As a result a one off interest adjustment will be made on your account as a correction. This will appear in your transaction history within internet banking and the BankVic App from Wednesday 5 June 2019.
How will the change impact your credit card interest?
The following scenarios on card use may apply to you:
I try to pay my credit card balance in full each month, but sometimes will miss a full payment
You will continue to be charged interest on your outstanding purchase balance, but from 16 December 2018 the interest per statement period will only be incurred from after your due date. The change may mean that you’ll pay less overall interest than previously.
I’m already paying on existing outstanding purchase balances
You’ll continue to pay interest as you do today until you pay the full closing balance. Once paid, you’ll regain your interest free days and interest will be charged from after the due date.
I pay my credit card balance in full each month
Paying your balance off each month by the due date means that you will not be directly impacted by this interest charging change. You’ll continue to pay no interest on your purchases balance.
Information on this page is general in nature and does not take into account your personal circumstances. You should consider whether it is appropriate for you before acquiring the product. See www.bankvic.com.au/self-service/forms-and-documents for important information relating to these products.