The content is accurate at the time of publication and is subject to change.

When you make a purchase with your credit card, the issuer is required by law to provide a grace period during which you can pay off purchases in full without being charged any interest. The Credit CARD Act of 2009 states that credit cards must give customers a grace period of at least 21 days; most issuers give about 25 days.

However, the grace period requirement does not apply in all situations. There is usually no grace period for the following circumstances:

  • Cash advances – these almost always begin accruing interest right away, and usually at a higher APR than the interest rate for purchases.

  • Balance transfers – like cash advances, interest can begin accruing immediately, and at a different rate than the purchase APR.

  • Checks – if your credit card issuer sends you checks that you can use to pay bills or get cash, these also do not usually have a grace period, and a different APR may apply.

Also, if you carry a balance from one month to the next, the grace period requirement is dropped and interest will be charged from the day you make a purchase. Even if you leave a small portion of your balance unpaid one month, the next month your purchases will accrue interest from the time you make the purchase.

To avoid paying interest, pay off your entire credit card bill in full every month before the due date.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.