What is a grace period for interest on a credit card?
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I’m turning 18 next month so I’m thinking of getting a credit card to start building my credit. The card I was thinking about getting has a 24 day grace period for interest charges. I’m not sure what exactly this means. I want to use the card but I don’t want to pay interest for using it.
Thank you
Re: grace period for interest on a credit card
Credit cards have an interest free grace period between the purchase date and the statement due date, but ONLY if you pay the balance in full every month!
Most cards have 3 or 4 weeks between the closing date and the statement due date. So the grace period can be a lot longer than 24 days. For example, if you use the card on the 1st day of the month, you have a full month until the closing day PLUS that 3 – 4 weeks until the due date, meaning 50 – 60 days interest free grace period.
You’ll probably have to start with a secured card, because you won’t qualify for any major credit card. Use the card for regular purchases, wait for the statement and pay the balance in full every month. This will build your credit while avoiding interest.
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