Grace Period

The window between your statement date and your due date during which a paid-in-full balance accrues no interest.

If you carry a balance, you lose the grace period — and interest begins accruing on new purchases from the transaction date. Most issuers offer 21-25 day grace periods. Pay in full to preserve grace; carry a balance and you're paying interest from the moment you swipe.

Reviewed by the ClearValue Editorial Team.