• Skip to primary navigation
  • Skip to main content
  • Skip to footer

FinanceJar

FinanceJar

Take the next step on your journey

  • Credit Scores
    • Get Free Credit Score
    • Get Your Free FICO Score
    • Credit Score Range
  • Credit Repair
  • Credit Reports
    • Credit Inquiries
  • Credit Cards
    • Credit Card Reviews
    • Best Credit Cards for Bad Credit
    • Fair Credit
    • No Credit
    • Building Credit
    • Secured
    • Unsecured
    • 0% Interest
    • No Annual Fee
    • Guaranteed Approval
    • No Credit Check
    • No Foreign Transaction Fee
    • Gas
    • Students
  • Debt
    • List of Collection Agencies
  • Loans
  • About Us
  • 24/7 Support:

    323-649-8707

Home Credit Cards What Is a Grace Period on a Credit Card and How Does It Work?

What Is a Grace Period on a Credit Card and How Does It Work?

what is a grace period on a credit card

At a glance

A credit card grace period is usually the time between your statement closing date and payment due date. Grace periods can be leveraged to avoid paying interest on credit card purchases.

Written by Kari Dearie and Jesslyn Firman

Reviewed by Robert Jellison

May 20, 2022

Fresh advice you can trust

We promise to always deliver the best financial advice that we can. Our writers and editors follow strict editorial standards and operate independently from our advertisers and affiliates. Learn more about how we make money.

Credit card billing and interest can be confusing, but understanding how your payment cycle works can help you use your credit card much more efficiently. For example, many cards offer something known as a grace period—a time period in which you can make purchases that won’t accumulate interest.

Keep reading to learn what a credit card grace period is, how you can benefit from it, and how long most grace periods last.

Table of Contents

  1. What is a grace period on a credit card?
  2. How do credit card grace periods work?
  3. How to make the most of your grace period
  4. Exceptions to credit card grace periods
  5. How long is the typical grace period on a credit card?
  6. How to extend your credit card grace period

What is a grace period on a credit card?

A grace period on a credit card is the span of time between the end of your billing cycle (aka your statement closing date) and that billing cycle’s payment due date.

It’s important to understand those terms:

  • Statement closing date: As mentioned, this is the end of your credit card billing cycle. On this date, your card issuer will send you your statement balance (keep in mind your statement balance and current balance are different), which is a list of all the charges you racked up on your card during that cycle and which you now have to pay off (or at least make a minimum payment on).
  • Payment due date: However, you don’t have to pay your balance immediately on the closing date. You’ll have at least 21 days before the due date, by which time you’re required to make a payment.

Again, the period of time between those two dates is known as your grace period.

Where can I find my statement closing date?

If you don’t know when your statement closing date is, you can find that information in your online card account or on your monthly credit card statement.

Illustrating your credit card billing cycle

To make the timeline of your billing cycle clearer, review the illustration below.

how credit card billing cycle works

Note that the grace period is technically part of your next month’s billing cycle, not the cycle that you’ve already received a balance for.

Many grace periods are interest-free

Many credit card issuers waive interest charges on purchases made during the grace period—as long as you fulfill certain conditions, which we’ll describe in detail below. However, this isn’t a requirement. Whether or not card issuers offer an interest-free grace period is at their own discretion.

If your credit card does offer an interest-free grace period, you can take advantage of it to minimize your spending and use your card much more efficiently than you’d normally be able to.

How to tell if your card has a grace period

To see if your credit card has a grace period, check the card’s “rates and fees” or “terms and conditions” page. You can also check the information in your card’s online portal. Your grace period will typically be listed near your card’s APR.

If none of these return results, call the number on the back of your card and ask a customer representative.

Why is your credit card grace period important?

Your grace period is important because it reduces your borrowing costs and helps you manage your finances. Here are the two major benefits of a credit card grace period:

  1. Extra time to pay: A grace period gives you extra time (at least 21 days) to secure the finances to pay off your statement balance. This lets you avoid late fees and improve your credit score.
  2. No interest: Depending on the length of your credit card’s grace period, you could enjoy 21–55 days of interest-free spending on your credit card. As mentioned, we’ll explain this in detail in the next section.

How do credit card grace periods work?

As we said, your credit card’s grace period begins on the last day of your billing cycle, known as your statement closing date. You may also see this day referred to as your:

  • Statement date
  • Closing date
  • Close date

Your statement closing date is an important day in your credit card billing cycle, as this is when your card issuer will tally up all your charges for that cycle and submit your bill to you. Any purchases you make on your card after the statement closing date will be added to your next cycle’s bill.

How interest works in the grace period

If you pay off your statement balance (the bill you just received) in full by the payment date, you won’t be charged any interest on those purchases.

Moreover, if you have an interest-free grace period, then purchases you make during the grace period—between your statement closing date and your payment due date—also won’t accrue interest.

However, there’s a catch: this is only true if you completely pay off your statement balance. If you don’t pay it off in full (even if the unpaid amount is very small, such as $5), then not only will you be charged interest on that $5, you’ll also immediately be charged interest on any purchases you made during the grace period.

Even worse, this interest will apply retroactively. This means it will be charged as though it had begun accruing as soon as you made the charges, instead of beginning to accrue on the payment due date when you failed to pay your statement balance in full.

An example of how credit card grace periods work

Credit card grace periods can be a little unintuitive, so they’re best explained with an example.

Let’s say you owe $500 on a credit card which has a statement closing date of March 15. Your due date for the bill is April 10. In other words, your grace period is March 15 through April 10.

During the grace period, you rack up a further $200 of charges on the card. As of April 10, you owe:

  • Previous statement balance: $500
  • Grace period charges: $200
  • Total balance on the card: $700

At this point, there are two possible scenarios. You could pay your previous statement balance in full, or you could fail to do so.

If you pay in full

If you pay your previous statement balance (the full $500) by April 10, your $200 in purchases made during the grace period won’t accumulate interest.

As long as you pay off that $200 (plus any additional purchases you make during that cycle) by your next due date, you’ll successfully avoid paying credit card interest on the entire $700 balance you currently owe.

If you don’t pay in full

However, let’s say you fail to pay the entire $500 by April 10. Maybe you just make the minimum required payment on your card (e.g., $20, leaving $480 unpaid), or maybe you pay off the majority of the balance but can’t pay off everything (e.g., you pay $495, leaving just $5 unpaid).

In both of these scenarios, you’re giving up your interest-free grace period. You’ll be charged interest on your remaining balance from the previous cycle, regardless of whether that’s $480 or $5. You’ll also immediately be charged interest on the $200 you spent during your grace period.

As you can see, even failing to pay off your bill by a very small amount can have serious financial consequences if you used your card heavily during your grace period.

How long will you lose your grace period for?

In the above scenario, there’s no guarantee you’ll get your grace period back once you enter the next billing cycle. If your credit card issuer is generous, they’ll only waive your grace period for the month you failed to pay in full, but they also might nix it for the next three or six months or even for an indefinite period.

Credit card issuers are able to do that because they aren’t legally required to offer an interest-free grace period at all. Essentially, interest-free spending is a privilege, not a right, and they’re allowed to take it away for as long as they want.

If you fail to pay your statement balance, contact your card issuer

If you make a mistake and you miss paying off your balance (especially if it’s by a very small amount, such as $1 to $10), correct the mistake by paying the remainder and then immediately contact your credit card company. Apologize and explain what happened. It’s possible they’ll sympathize and allow you to keep your grace period.

How to make the most of your grace period

It’s understandable if you find your credit card’s grace period exasperating or confusing, since there’s several different dates that you have to keep track of. Fortunately, the takeaway—what you should actually do—is very simple.

In a nutshell, just make sure to pay off your statement balance completely every month. If you do, you can use your card without paying interest (a very good thing, since credit cards tend to have high interest rates).

If you fail to pay off even one month’s balance in full, then the charges you make during the next month’s billing cycle (and potentially even charges you make after that) will accrue interest, and you won’t be able to use your card as efficiently.

Exceptions to credit card grace periods

You now know that your grace period will be negated if you don’t pay your credit card bill in full and on time. Additionally, some credit cards don’t offer a grace period to begin with, particularly ones that are available to people with bad credit scores.

There are further exceptions to credit card grace periods, such as:

  • Cash advances: This refers to money that you withdraw from an ATM using your card, essentially like a small personal loan.
  • Balance transfers: A balance transfer is a transaction where you move debt from one credit card (or multiple cards) to another to simplify your finances.
  • Convenience checks: These are special checks that draw money from a line of credit—in this case, your credit card.

These actions are usually exempt from grace periods, so they’ll begin accumulating interest at your card’s designated rate starting from the date of transaction.

How long is the typical grace period on a credit card?

The typical grace period for a credit card is between 21–25 days, but can be as long as 55 days.

By law, credit card companies are required to send you your bill at least 21 days before that statement’s payment due date. So at minimum, your grace period should be 21 days long. However, many card issuers offer longer grace periods.

For an idea of the typical grace period, here’s what the major credit card issuers offer:

  • Visa grace period: One calendar month 1
  • Mastercard grace period: 30 days 2
  • American Express grace period: 21-25 days 3
  • Capital One grace period: At least 25 days 4

Does paying your credit card balance in the grace period hurt your credit?

No, paying your balance off during your grace period won’t hurt your credit. In fact, paying your credit card bill before the due date is beneficial for your credit, as it ensures you won’t make a late payment. As you’ve learned, it also protects your grace period itself.

How to extend your credit card grace period

You can’t actually extend your grace period, as it’s a set time frame determined by your credit card issuer.

However, understanding your billing cycle can help you maximize your credit card use and keep your finances in good standing.

Once you know when your grace period begins and how long it lasts, you can make the most out of this interest-free purchasing period. For example, if you have a big upcoming purchase, time it during your grace period and ensure all your bills are paid on time to avoid paying interest on your big buy.

Takeaways: Make interest-free purchases during your grace period

  • Your grace period is usually the time between your statement closing date and your statement due date.
  • Grace periods are optional, and vary across credit card issuers
  • Pay your statement balance in full to enjoy interest-free spending during your grace period.
  • If your balance isn’t paid in full, your grace period will be canceled.

Article Sources

  1. Visa. "Visa Core Rules and Visa Product and Service Rules" Retrieved May 20, 2022.
  2. Mastercard. "Mastercard Send Cross-Border Product Guide" Retrieved May 20, 2022.
  3. AmericanExpress. "How Credit Cards Work" Retrieved May 20, 2022.
  4. CapitalOne. "What Is a Billing Cycle?" Retrieved May 20, 2022.

Kari Dearie

Credit Cards Editor

View Author

Kari Dearie is an editor for FinanceJar specializing in credit and personal finance. She previously managed a B2B website in the data privacy and digital compliance industry.

Jesslyn Firman

Credit Analyst

View Author

Jesslyn Firman is a credit analyst for FinanceJar. Her work covers credit repair and credit scores, and in the past she's extensively researched and written about the insurance industry. Jesslyn has a B.S. in Finance and Accounting and an MBA in Management.

Related Articles

Gun being bought with a credit card
Credit Cards

Nov 10, 2022

Can You Buy a Gun with a Credit Card?

You can use a credit card to purchase a gun, but not in every...

Victoria Scanlon
Credit card with a Closed sign with a credit score gauge
Credit Cards

Aug 4, 2022

Does Getting Denied for a Credit Card Hurt Your Credit Score?

Getting denied for a credit card won’t hurt your credit score, but...

Renée Chen
Credit card in the process of being activated
Credit Cards

Updated Dec 3, 2022

How to Activate a Credit Card

Activating a new credit card is a simple but important step that...

Victoria Scanlon
Clock and credit card representing how often you can apply for a new card
Credit Cards

Aug 4, 2022

How Often Can You Apply for a Credit Card?

While you can apply for credit cards as often as you want, you’ll...

Kari Dearie
Secured credit card and credit score gauge on a scale representing raising your credit score
Credit Cards

Aug 26, 2022

How Much Will a Secured Credit Card Raise Your Credit Score?

The exact number of points your credit score will increase by when...

Victoria Scanlon
Man standing in front of a screen showing the average credit card interest rate
Credit Cards

Updated Nov 4, 2022

Average Credit Card Interest Rates in 2025

The average credit card interest rate is around 20%, but varies...

Kari Dearie
FinanceJar

Footer

Credit

  • Credit Scores
  • Credit Repair
  • Credit Reports
  • Credit Cards
  • Debt

Company

  • About Us
  • Contact Us

Legal

  • Terms & Conditions
  • Privacy Policy

Call Us

9AM – 9PM EST: 347-527-4868
24/7 Help Line: 323-649-8707

How We Make Money

We make money from advertising. We place links on our website to our affiliates, and when you click those links, our affiliates compensate us for it. Our relationships with our affiliates may affect which products we feature on our site and where these products appear in our articles.

Facebook Twitter Instagram TikTok YouTube LinkedIn Pinterest

© 2025 – ONR Financial Networks LLC – All Rights Reserved.

  • Credit Scores
    • Get Free Credit Score
    • Get Your Free FICO Score
    • Credit Score Range
  • Credit Repair
  • Credit Reports
    • Credit Inquiries
  • Credit Cards
    • Credit Card Reviews
    • Best Credit Cards for Bad Credit
    • Fair Credit
    • No Credit
    • Building Credit
    • Secured
    • Unsecured
    • 0% Interest
    • No Annual Fee
    • Guaranteed Approval
    • No Credit Check
    • No Foreign Transaction Fee
    • Gas
    • Students
  • Debt
    • List of Collection Agencies
  • Loans
  • About Us
  • 24/7 Support:

    323-649-8707

We hope this template helps you achieve your goals.

Would you please review us?

A review would mean a lot to us — and takes less than 20 seconds. Let us know what you think. Thanks!

Leave My Review

What you’ll get

  • Assess

    Fill in your information and we will securely pull your TransUnion credit report.

  • Address

    We challenge inaccurate negative items with the bureaus and your creditors.

  • Advise

    We will give you advice for how you can improve your credit. Don’t want to wait? Call us now.

Don’t want to wait? Call us!

Monday to Friday, 10AM - 7PM EST

FinanceJar

Get a FREE 5-minute credit consultation.

Get a credit improvement plan that works for you with 1 phone call.

What you’ll get

1
Assess

Fill in your information and we will securely pull your TransUnion credit report.

2
Address

We challenge inaccurate negative items with the bureaus and your creditors.

3
Advise

We will give you advice for how you can improve your credit. Don’t want to wait? Call us now.

This is completely secure and won’t hurt your credit score.

By clicking "Submit" I agree by electronic signature to: (1) be contacted about credit repair or credit repair marketing by a live agent, artificial or prerecorded voice and SMS text at my residential or cellular number, dialed manually or by autodialer, and by email (consent to be contacted is not a condition to purchase services); and (2) the Privacy Policy and Terms of Use.

Don’t want to wait? Call (888) 859-0871 now

FinanceJar

Advertising Disclosure

Some of our articles feature links to our partners, who compensate us when you click them. This may affect the products and services that we showcase in our articles and how we place and order them. It does not affect our evaluations of them, which our writers and editors create independently, without considering our relationships with our partners.

FinanceJar

Editorial Standards

We promise to always deliver the best financial advice that we can. That’s our first priority, and we take it seriously.

To ensure that our articles and reviews are objective and unbiased, our writers and editors operate independently from our advertisers and affiliates. Our writers do not take FinanceJar’s relationship with its affiliates into consideration when writing their reviews and articles.

Everything we publish is as accurate and as complete as we can make it. All of our articles undergo several rounds of fact-checking before we publish them, and we do our best to keep them as no-nonsense and jargon-free as possible while still delivering the information that you need.

We know that taking financial advice from us requires a lot of trust on your part. We’re grateful for that trust, and we won’t abuse it. Learn more about our editorial standards.

FinanceJar

How We Make Money

FinanceJar partners with other companies in the credit and finance industry, such as credit card issuers and credit repair companies.

We make money through advertising. Our pages feature links to our partners’ websites. If you click on one of those links, we get paid.

The links to our partners are always clearly marked. You’ll always be able to tell what you’re clicking. We’ll never try to trick you into clicking anything you’re not genuinely interested in.

That’s the only way that we make money. We don’t accept compensation in exchange for reviews or articles, and we don’t directly sell any products or services ourselves. Our editorial team operates independently (with no influence from our affiliates or our advertising team) so as to avoid compromising the objectivity of our reviews. Learn more about how we make money.