Grace Period
Updated on October 4, 2023
A “grace period” in the context of credit cards refers to a specific period of time during which you can make payment of credit card dues beyond the due date without incurring any interest charges. The billing cycle is active and does not lapse due to non-payment of credit card dues It’s a valuable feature provided by credit card issuers that offers you a window to pay off your credit card balance in full before interest starts accruing.
Understanding the grace period in detail
This advantageous feature offers an opportunity to settle your credit card balance entirely before interest begins accumulating. The grace period encompasses the interval from your credit card’s billing cycle conclusion to the due date for payment in that cycle. This span of time, usually around 3 days, allows you to pay off your credit card balance without incurring interest if paid in full by the due date. However, not adhering to this could lead to interest charges accumulating on the unpaid balance. Notably, the grace period generally does not apply to cash advances or balance transfers, as interest is usually charged from the transaction date.
