Understanding Credit Card Grace Periods and Interest Charges

A credit card grace period is the time you have to pay your statement balance before interest is charged. Depending on the card issuer and card type, it may range from 20 to 55 days. If you miss the payment deadline, finance charges may apply and the grace period may be lost. Many cards also charge interest on new purchases when part of the previous statement balance remains unpaid. Always check your card agreement to understand when interest starts, whether a grace period can be reinstated, and how outstanding balances affect new transactions.

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