What is a grace period on a credit card?

A grace period on a credit card is a period of time—usually around 21 days—after a credit card purchase is made before the credit card company will begin charging interest on the purchase. During this grace period, your bill is due, but you won’t be charged an interest rate until the grace period has passed. In Montana, a credit card company must provide a grace period to all consumers who meet certain criteria established by the federal Credit Card Law. To be eligible for the grace period, consumers must pay their bill in full each month, not be delinquent on payments with the same credit card issuer, and not exceed their credit card limits. The grace period usually begins on the first day of the billing cycle and ends on the payment due date. The exact length of the grace period may differ from one credit card issuer to another, but most adhere to the 21-day standard provided by the Credit Card Law. In addition to the grace period, credit card companies in Montana must also provide consumers with a copy of their billing statement and an explanation of any fees associated with the account. This helps protect consumers from any unexpected credit card fees or charges that may be applied to their account. By understanding these guidelines, consumers can make more informed decisions about which credit cards best suit their needs. In addition, when used responsibly, credit cards can help build credit and provide important resources for consumers.

Related FAQs

What is the best type of credit card for me?
What is the average APR on credit cards?
What are the different types of interchange fees?
How do I earn rewards with my credit card?
Are there any rules or regulations that apply to credit card companies?
What should I do if I spot an error on my credit report?
What is a balance transfer APR?
What is a default on a credit card?
What is the most important information to know about a credit card?
What are merchant fees associated with credit cards?

What is a grace period on a credit card?

Related FAQs

Related Blog Posts