What is a grace period on a credit card?

A grace period is a period of time after a credit cardpayment is due, during which the customer is not charged interest. In Alaska, credit cardholders can take advantage of a grace period of at least 21 days for purchases and cash advances. During this period, you can make your payment without incurring any interest. However, if you pay after the grace period ends, interest will be applied to the balance. The grace period only applies to purchases and cash advances; any balance transferred from another card, or any fees associated with the card, are not part of the grace period and will be subject to interest fees. Additionally, if you do not pay your balance in full during the grace period, the remaining balance will continue to accrue interest until it is paid off. It is important to note that a grace period only applies when you make your minimum payment on time. If you fail to make any payment, the grace period will no longer apply.

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