A credit card grace period is a time frame, usually lasting between 21 and 25 days, during which you won’t be charged interest on your transactions.
While many credit cards offer a grace period, it’s not always guaranteed. You could lose your grace period if you make late payments or carry a balance from one month to the next.
How to Avoid Extra Charges?
Paying your credit card balance in full and on time each month is the best way to avoid extra charges and make the most of your grace period.
How Does a Credit Card Grace Period Work?
- Set Time Frame: Typically, the grace period lasts between 21 and 25 days.
- Starts After Billing Cycle: The grace period begins at the end of your statement period, also known as the billing cycle.
- Payment Due Date: Your payment due date is set at the end of the grace period. If you pay your balance in full by this date, you won’t be charged interest on your purchases.
Understanding your credit card’s grace period can help you manage your finances better and avoid unnecessary interest charges.