Credit > Grace Periods (1) The grace period is the period during which purchases that are made can be repaid without finance charges being assessed. Typically, credit card issuers offer 25-30 day grace periods but they are often contingent upon the cardholder meeting certain criteria. First, the cardholder has to pay the “balance due” on their last statement on time and in full. Second, the cardholder must pay off the balance due on their next statement on time and in full to avoid the finance charges on purchases made between the two statement dates. In other words, the consumer has to pay off their balances on time and in full for two, consecutive, billing periods or the grace period for new purchases made between the two billing dates does not apply. The interest will start to accrue immediately on new purchases that were made during the time period. Consumers who carry balances on their cards forfeit their grace period. |
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