Credit Card Terms - Grace Period

What is a credit card grace period?

Credit Card grace period is the time or period during which if you pay your card balance in full you will not have to pay finance charges for the credit card company.

Some credit card companies do not offer a grace period and charge finance charges, e.g. you might get charge a fee from the date you made your purchase or the purchase is recorded on your credit card until you pay it off.

If your credit card company offers a grace period you will receive a bill in the mail, a statement, that specifies the finance charges - if any, itemized purchases and a due date by which you have to make the payment in order to avoid finance charges - and late fees etc.

The grace period is typically from around 21 days to 28 days and it applies to new charges or purchases you made.

Grace period doesn't typically apply for cash advances and/or balance transfers.

If you pay your credit card balances in full each month and are shopping for a new credit card, check to see if they offer the grace period as that could have impact on whether you need to pay finance charges or not.