What is a grace period on a credit card?

Grace period is a period when credit card companies do not charge a finance charge for any balance left unpaid by the due date. It gives customers a bit of extra time to pay their bills before being charged interest. In Oregon, the grace period for credit cards is 21 days. This means that if a payment is received by the due date, customers can typically avoid paying any finance charges for any remaining balance. It is important to remember that the grace period only applies to the remaining balance after the initial payment is made. For example, if the total balance is $1000 and only $500 is paid by the due date, the grace period will only apply to the remaining balance of $500. Any amount above the initial payment will still be subject to finance charges, even during the grace period. It is also important to understand that credit card companies may choose not to offer a grace period. For example, if a customer has an account with a late payment history, credit card companies may choose to forgo the grace period and apply interest to any unpaid balance the day after it is billed. Finally, customers should be aware that the grace period does not apply to cash advances. Any cash advance balance will be subject to a finance charge from the day of the advance.

Related FAQs

When is a credit card issuer required to disclose the terms and conditions of a credit card?
What is the Electronic Funds Transfer Act?
What is a chargeback fee?
What is the Credit Card Accountability Responsibility and Disclosure Act of 2009?
How do I determine the credit limit for my credit card?
How do I dispute a charge on my credit card statement?
Is there a limit on the amount of fees a credit card company can charge?
What is the difference between a credit card and a debit card?
What is the most important information to know about a credit card?
What is the best type of credit card for me?

What is a grace period on a credit card?

Related FAQs

Related Blog Posts