How Does a Credit Card Grace Period Work?
A grace period is the window between the end of a billing cycle and the payment due date during which new purchases do not accrue interest — if you paid your last statement balance in full.
How the grace period is earned
Most U.S. cards grant a grace period only when the previous statement balance was paid in full by the due date. If you carry a balance, the grace period is typically suspended, and new purchases can accrue interest from the day they post.
How long is it?
The Credit CARD Act requires at least 21 days between the statement date and the payment due date on cards that offer a grace period. Some cards offer more.
Cash advances and balance transfers
Cash advances typically do not have a grace period — interest starts accruing immediately. Balance transfers may have promotional terms, but new purchases on the same card can lose their grace period while a balance transfer is outstanding.
Regaining the grace period
On most cards, once you pay the statement balance in full for a cycle and again for the following cycle, the grace period on new purchases returns.
Frequently asked questions
- Is a grace period the same as a due date?
- No. The due date is a single day; the grace period is the interest-free window that ends on that date.
- Do all cards offer a grace period?
- Most consumer cards do, but they are not required to. Cards without a grace period charge interest on purchases immediately.