What is a credit card grace period?
Quick insights
- A grace period is the window between your billing statement closing date and your payment due date.
- Credit card grace periods are usually between 21 and 25 days.
- To understand the grace period on a particular credit card, check the terms and conditions or contact your credit card issuer.
A grace period is the time between the end of your billing cycle and your payment due date when you can pay your balance in full without interest or late fees. It’s typically 21–25 days and can be estimated using your daily APR.
Grace periods can make major purchases more convenient by giving you extra time to pay. However, the grace period ends if you don’t pay your statement balance in full by the due date.
How long is a typical grace period for a credit card?
The average grace period on credit cards is between 21 and 25 days, but some promotional grace periods may be longer when you first receive and activate your card. There is no requirement under federal law to offer grace periods to customers, however many financial institutions do provide this service. If a grace period is provided, it needs to be at least 21 days.
Remember that grace periods do not apply to cash advances or balance transfers. So, if you take a cash advance from your credit card at an ATM or in person at a bank branch, interest begins accruing the same day. Interest also starts accruing the same day a balance transfer is completed.
Can you lose your credit card grace period?
It’s important to familiarize yourself with the rules governing grace periods. For example, missing your grace period payment date by even one day can result in interest charges, plus you could get a late fee. Carrying balances transferred from other cards that are not paid off before the promotional APR ends on your credit card can also cause you to lose the grace period for that card.
If you have lost your grace period due to a one-off payment that was late by a day, this doesn’t have to be a permanent state—paying off your balance on time and in full can in many cases restore the grace period. Check your credit card’s terms and conditions for details.
Does every credit card come with a grace period?
Federal regulations require credit card issuers to mail paper statements or offer access to electronic statements at least 21 days before the minimum due date. Check your card’s terms and conditions and look for the paragraphs prominently featured in your billing statement where it says interest charges or APR.
Options for paying down debt when no grace period is available
If your card doesn’t come with a grace period and you find yourself unable to pay off the balance in full each month, consider paying more than the minimum amount each month, and consider adopting other measures, such as:
- Limiting or halting further purchases using that card
- Creating a budget to pay down the card debt
- Setting up automatic payments to ensure bills are paid on time
What are the grace periods on Chase credit cards?
The grace period on Chase credit cards varies but is generally at least 21 days from the end of the monthly billing cycle until your due date. Note: Some Chase business credit cards may have a slightly shorter grace period of 20 days.
Chase may reinstate a grace period if you pay your balance in full for two consecutive billing cycles.
Chase offers balance transfers for select cardmembers with good credit up to 18 months—these are sometimes used for paying off higher interest balances on non-Chase credit cards or for important life event purchases, such as furniture for a new baby’s room or a honeymoon. One of the best ways to enhance your eligibility for credit cards with lower APR and more perks is to raise your credit score.
In summary
Grace periods can be a valuable part of responsible credit card use, potentially helping cardholders with making their payments on time and avoiding late fees. Knowing your card’s grace period and APR is one of the first steps toward reducing the interest.
