Credit Card Grace Periods Explained

A grace period can let you avoid purchase interest by paying the statement balance in full on time. It does not cover every transaction.

What it is

A grace period is the time between the end of a billing cycle and the payment due date during which interest may be avoided on purchases.

How to keep it

Follow the card agreement. Commonly, paying the statement balance in full by the due date preserves the purchase grace period.

How it can disappear

Carrying a balance can cause new purchases to accrue interest. The rules for restoring a grace period vary by issuer.

What is excluded

Cash advances and some balance transfers may begin accruing interest immediately. Check transaction-specific APRs and fees before using them.