Grace period
The grace period is the window between your statement closing date and your payment due date, at least 21 days by federal law. Pay your statement balance in full within it and you owe no interest on purchases.
Why it matters
It matters because it lets you borrow interest-free each cycle, but the protection only holds when you pay the full statement balance; carry even a small amount and you can lose the grace period on new purchases.
Example
If your statement closes on the 1st with a $400 balance and you pay all $400 by the due date on the 23rd, you pay zero interest on those purchases.
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Educational only — not financial advice. No guarantees.