Credit Card Grace Period Explained FAST (Payment Basics 3/4)

The grace period on your credit card is very easy to understand. It's basically the gap between the billing cycles closing date and the due date. (It's typically about 25 days). The grace period allows you to continue to use your credit card interest free, during the gap. However, if you don't pay off your statement balance in full each month, you'll lose your grace period and start to accrue interest on all your future purchases. If you want your grace period back, you'll need to pay off your statement balance in full for 2 months in a row.