Credit Card News Room - Understanding Credit Card Grace Periods
What are credit card grace periods, and why you should care.
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Understanding Credit Card Grace Periods

Credit Card News Room :: Info :: General

Any consumer who is looking to acquire a credit card should shop all of the available features and benefits of those credit cards. There are actually many factors that individual card holders view as important considerations for any credit card they may decide to apply for and use:
  1. Introductory Credit Card Interest Rates
    • The Actual Annual Percentage Rate (APR)
    • Length of Introductory Offers Time Period

  2. Regular APR Credit Card Interest Rate

  3. Type of Interest Rate
    • Fixed
    • Variable

  4. Annual Fees

  5. Available Credit Card Rewards Programs

  6. Balance Transfer Amount and Restrictions

  7. Balance Transfer Fees (If any)

  8. Security Measures

  9. Fraud Liability Protections

  10. Spending Limits

  11. End-of-the-Month Expense Management Reports

  12. Customer Service
    • Online
    • By Phone

  13. Payment Methods
    • Online
    • By Phone
    • By Mail
    • Bill Pay through a checking account

  14. Grace Periods

  15. Personalized Cards

  16. Unsecured or Secured

Each credit card deals with the question of a grace period in a different way. It is important that you take care to see what your credit card company's grace period policy requires.

The grace period is... the amount of time that the credit card company will let pass between a purchase being made and when that purchase amount begins to accumulate interest.

Some credit card companies offer a 30-day grace period on payments, but the industry average is closer to 23 days.

One should really be careful to read up on the company's grace period policy, because some credit card companies offer no grace period at all to their customers. What this means to you as a consumer is that the day you charge any amount, that amount will begin to accumulate interest beginning the very next day!

However, if you shop carefully and obtain a credit card that offers a 30-day grace period, then you will pay no interest on your purchases, if you pay off those purchases in full within the 30-day grace period.

By paying close attention to your card's grace period, and paying your balance in full before the grace period expires, depending on your purchase patterns, you can literally save yourself hundreds of dollars per year in additional interest costs.


Braxton Heitz writes for the Credit Card News Room


Credit Card News Room :: Info :: General




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