The grace period is the time between the end of your billing cycle and the payment due date. If you pay your full statement balance within it, most cards charge no interest on purchases.
Disclaimer: This article is for general educational purposes only and is not financial advice. Card terms, fees and rates vary by issuer and country, so always read the official terms or speak with a qualified adviser before applying.
How It Works
Purchases made early in a cycle can enjoy up to about 50 days before payment is due, while those made at the end of the cycle get fewer days.
How You Lose It
- Carrying any balance past the due date can remove the grace period on new purchases.
- Cash advances usually never have a grace period.
How to Get It Back
Most issuers restore it after you pay the full balance for one or two consecutive cycles. Check your terms.
Tips
- Know your statement closing date.
- Time large planned purchases just after the closing date.
- Always pay the full statement balance.
Frequently Asked Questions
Is the grace period required by law?
Rules vary by country; in the US cards that offer one must give at least 21 days.
Does it apply to balance transfers?
Usually not; transfers follow their own promotional terms.
Conclusion
Paying the full statement balance on time keeps your grace period and your purchases interest free.
