Interest and charges

We charge different rates of interest on purchases and cash.

You can find full details of the interest rates which apply to your account on your statement, and how we calculate interest in your credit card agreement.

The IKEA Family credit card has an interest free period of up to 56 days on purchases.

Depending on when you make your purchase to when your statement is generated, you'll get an interest free period from the date of the purchase to your next due date.

How the statement cycle works
Your statement cycle lasts 28-31 days. At the end of this cycle, your statement is generated. You then have 22-25 days (the interest-free period) to make payment. Any purchases made during the cycle will appear on your statement, and payment must be cleared by the due date to avoid interest. 

If you pay your statement balance in full by the due date for at least two months in a row, you won’t incur interest on purchases. You will however always incur interest on cash transactions.

Interest is charged when:

• For purchases, when you carry a balance beyond the interest free period of up to 56 days.
• You make only a partial payment instead of paying your full balance, excluding any instalment balances.
• You make cash transaction (cash transactions incur interest immediately with no interest free period).
• If you miss one monthly payment, you'll be charged interest on the instalment plan payment which should have been paid.

Interest is calculated daily and applied monthly. Your interest rates can be found on your statement.

• Pay your balance in full and on time each month for at least two months in a row to avoid interest on purchases.
• Pay more than the minimum payment to reduce interest from adding up.
• Avoid cash transactions, as they have higher interest rates and no grace period.

We understand it might seem odd to be charged interest when you've paid off your balance last month and didn’t use your card again. But this is actually normal – it’s called ‘trailing or residual interest’

The IKEA Family credit card charges interest daily, and applies this monthly on your statement.

After your statement is created, it can take a few days for:

• You to view the statement
• You to make a payment
• The payment to reach us.

During those few days, interest keeps building until your payment is applied to your account. That’s what shows up as trailing interest.

Here’s an example of how this can happen:

1. Your statement arrives
You haven’t used your credit card for over a month. When you get your statement, you’ll choose to pay the full balance.

2. Statement Balance
The balance on your statement includes interest up to the statement date, but not any interest added afterward.

3. Full balance payment
You pay the full balance by bank transfer, and it reaches your account within 5 working days.

4. Your next statement arrives
You haven't used your credit card for over two months. The statement balance is the interest charged from the last statement date until your payment was received.

5. Full balance payment
You pay the full balance by bank transfer, and it reaches your account within 5 working days.

6. All done zero balance
You haven’t used your credit card for over a month. When you get your statement, you’ll choose to pay the full balance.