How does the grace period on a credit card work?
A grace period on a credit card gives you a certain amount of time to pay off your entire balance without accruing finance charges. To calculate your grace period, you need to know your due date and closing date.EffectsIf you have a credit card balance, you will have a closing date which is the date your credit card company closes out the processing for that billing cycle. The balance you have on a credit card on a closing date is the balance reported to credit reporting agencies.SignificanceYour due date on a credit card is approximately 20 to 25 days after the closing date. These days represent your grace period. To avoid paying any finance charges, you should pay your entire balance in full on or before the due date. Payments that are one day late past the due date will incur finance charges and a late fee.FeaturesYour statement is mailed the day after the closing date. If your closing date is March 15 and you make additional purchases on your credit card on March 16, the new purcha
