What is a grace period?
Grace period: On a credit card, the grace period is the time between the end of a billing cycle and the payment due date during which new purchases do not accrue interest.
If you pay your full statement balance by the due date, you typically avoid interest on purchases. If you carry a balance, you may lose the grace period until the balance is paid in full.
Cash advances and balance transfers usually do not have a grace period. On some loans, such as federal student loans, a grace period is the time before repayment begins.
When you compare offers
Check each card's terms for the length of the grace period and which transactions it covers.
Related guides
- Choosing a Credit Card by Your Credit Score Range
How your credit score range can point you toward secured, rewards or balance-transfer credit cards, and which fees to check before applying.
This glossary is for general educational purposes and isn't financial, legal or insurance advice. Lendara is not a lender and does not make credit decisions. Lendara is a free online marketplace that connects you with participating lenders and providers, who set their own eligibility rules, rates, fees and terms. Lendara may receive compensation from partners, which may affect which offers appear and their order.