What is a grace period on a credit card?

A grace period on a credit card is a set period of time in which a cardholder may pay their balance in full without paying any interest. In North Dakota, the grace period is 21 days from the statement date. This means that any cardholder who pays the full balance of their credit card within 21 days of the statement date will not be charged any interest on the balance owing. The grace period is a helpful feature of credit card usage as it allows some users to avoid high levels of interest and debt. If a cardholder fails to pay their balance in full within 21 days of the statement date, interest will be charged on any remaining balance from the date of the statement to the date of payment. Interest continues to be charged until the balance is paid in full. Additionally, any late or missed payments will also be subject to fees or other penalties. It is important to note that some credit cards may not offer a grace period. The type of credit card and the agreement with the card issuer may also vary, so it is important to read the terms and conditions of the card agreement to ensure an understanding of what is offered.

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What is a grace period on a credit card?

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