What is a credit card "grace period"?

Last Updated: May 24, 2013 08:44PM UTC

The grace period for credit cards is the period of time where you are not charged interest on your balance. As long as your balance is paid off in full before the end of the grace period, you will not incur interest charges. By law, card issuers must mail your statement at least 21 days before interest charges begin to be assessed.

Failure to pay the balance due will result in interest charges. These charges are typically computer based on the average daily balance on your credit card during the month.

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