Question: What is Grace Period for Credit Cards?

Answer:  Credit Card grace period is the period of time between when you make a purchase and when your payment is considered due. By law, credit card issuers must mail your statement at least 14 days before the due date to give you time to pay. Usually, Credit Card issuers give you a grace period of 21 or more days.

An example of Credit Card Grace Period.  You use your Visa credit card and the credit card company mailed you the credit card statement on December 31.  You have to remit the payment on January 25 without paying any interest charges.  The 25 days is known as the grace period.

A grace period means that if you pay your balance on time and in full, you won’t pay any finance charges.  It is similar to having a free loan during the grace period.  If, however, you have carried a balance over from the prior month, you will NOT enjoy a grace period.