What is Grace Period?

The interest-free window between when your billing cycle ends and when your payment is due — typically 21-25 days by federal law (CARD Act).

The interest-free window between when your billing cycle ends and when your payment is due — typically 21-25 days by federal law (CARD Act). If you pay the full statement balance by the due date, no interest accrues on new purchases. Carrying any balance forfeits the grace period until you pay down to zero for two consecutive months.

Closely related concepts include Due Date, Statement Balance, Billing Cycle. Each of these helps clarify different aspects of the same topic.

Grace Period is a fees concept. It typically appears in the context of fees, APR, and how much a card costs to carry.