How long is the grace period?

The grace period is the number of days you have to pay your bill in full without triggering a finance charge. For example, the credit card company may say that you have “25 days from the statement date, provided you paid your previous balance in full by the due date.” The statement date is given on the bill.

The grace period usually applies only to new purchases. Most credit cards do not give a grace period for cash advances and balance transfers. Instead, interest charges start right away.

If you carried over any part of your balance from the preceding month, you may not have a grace period for new purchases. Instead, you may be charged interest as soon as you make a purchase (in addition to being charged interest on the earlier balance you have not paid off). Look on the credit card application for information about the “method of computing the balance for purchases” to see if new purchases are included or excluded. Information on methods of computing the balance is in the section “How is the finance charge calculated?”

Most Recent Credit Card Articles:

• 2009-07-26  Secrets To Get Low Interest Rate Credit Card From Current Provider

  You probably have heard many times that to get the best credit card, you need to do intensive research. It could be done online or offline. However, the thing is that you should not settle for one prospect provider or accept what seems to be an attractive offer. By taking time to do research, you wi... (more)

• 2009-07-24  Ways To Save Time In Search For Low Rate Credit Cards

  People who own a credit card can either enjoy its benefit or be threatened by its possible problem. The former happens if you know how to manage your debts. The latter will happen if the card will be abused and balances bloat. To maximize the use of the card, cardholders are looking for low rate cre... (more)

• 2009-05-23  The Two Faces of the Zero Percent Interest Credit Cards

  No matter how hard you would want to avoid incurring uncalled for credit card debt, this seems to be almost impossible with the skyrocketing credit card interests that come with each purchase you make using your plastic. Applying for a credit card with a zero interest rate may appear very appealing ... (more)

• 2009-05-10  You Owe It to Yourself to be Creditworthy Again

  There are so many consumers who have fallen behind on credit card payments and other financial obligations it seems no longer taboo to admit you have had some financial setbacks. In fact, getting help to control your debt is a popular topic these days as many consumers realize the seriousness of deb... (more)

• 2009-05-02  The Advantages of Low Interest Credit Cards

  People with good or excellent credit have a broader range of credit card offers to choose from. And the deals they can qualify for usually come with better terms and more favorable features than card offers that bad, fair or no credit owners are eligible for. Though good credit gives you more opp... (more)