Grace Period

A grace period is the period of time between the end of a credit card billing cycle and the date your payment is due, during which you can pay off your balance without incurring any interest charges.

If you pay your credit card balance in full by the due date each month, you’ll avoid paying any interest. However, if you carry a balance from one month to the next, you’ll be charged interest on the outstanding balance, starting from the date of the transaction.

The length of the grace period can vary depending on the credit card issuer, but it’s typically around 21 to 25 days. Understanding your grace period is crucial for managing your credit card debt and avoiding unnecessary interest charges.

• Related Terms: Credit Card, Payment, Interest, Billing Cycle, Due Date