November 2, 2014
The grace period allows you to use a credit card without paying interest on the stuff you buy. When do you lose the grace period? How to stop it?
The grace period allows you to use a credit card without paying interest on the stuff you buy. When do you lose the grace period? How to stop it?
You lose the grace period when you still have a balance on your card, that is why you want to always pay off your credit card in full every month. You also lose your grace period if you take a cash advance on your card and take cash out of your credit card at an atm. It is important to know what will make you lose your grace period because you do not want to pay any interest on your card. If you do not carry a balance and use your card to make purchases in store only you should not lose your grace period. If you have a balance transfer you lose your grace period most of the time also.
You are right on the money, Garrett. Let’s review.
The grace period allows you to receive short term loans when you use your credit card, while paying no interest on those loans. It is critically important to pay that card off in full each and every month. Otherwise, you are being charged interest immediately upon the posting of the purchase on each and every transaction. That is a mistake you cannot afford. Pay it off in full or get rid of it, it’s that simple.