Credit Cards
How do you lose a grace period on a credit card? How do you keep it? Why is this so very important?
How do you lose a grace period on a credit card? How do you keep it? Why is this so very important?
The “grace period” refers to the time between the statement closing date and the statement’s due date. During this time, cardholders are offered the opportunity to avoid all interest charges by paying their statement balance in full. So, you will lose the grace period if you don’t pay your entire statement balance by the due date.
As soon as you realize that you have lost your grace period, make a payment that covers your entire current outstanding balance. This won’t affect the interest accrued on past charges, but will make future charges eligible for the grace period.
You will not pay a penny in interest charges. Also, you can earn valuable rewards in the form of points, miles, and cash back at no cost to you.
Well said Denny. You stated the issue beautifully and I have nothing to add to your response. Well done!