Glossary
Grace period
The grace period is the interest-free window between your statement date and your payment due date — pay the full statement balance within it and you owe zero interest.
Most cards offer a grace period of roughly 21–25 days after the statement closes. If you pay the FULL statement balance by the due date, no interest is charged on any purchases from that billing cycle — this is the mechanism that makes cashback and rewards cards genuinely free to use for people who pay in full.
The grace period typically disappears the moment you carry ANY balance past a due date: many cards then charge interest from the original purchase date on new transactions too, not just the unpaid portion, until you pay the full balance again for a full cycle.
Cash advances and balance transfers usually do not get a grace period at all — interest accrues from the day the transaction posts, even if you pay your statement in full. Check your card's terms before assuming the grace period covers every transaction type.