What is a grace period on a credit card?

A grace period is a set period of time after a credit card bill is due during which a credit card holder can make their payment without incurring a late fee. Under Washington law, credit card holders have a grace period of at least 21 days after the due date on a statement before a late fee can be assessed. This grace period allows the cardholder a reasonable amount of time to make their payment without incurring an extra charge. The grace period is only applicable when the cardholder pays their full balance. If a partial payment is made, the late fee may still be assessed. Additionally, if the cardholder has had past due payments, the grace period may not apply. The grace period does not apply to cash advances or balance transfers, as both of these transactions are subject to immediate payment. Also, the grace period does not apply to promotional offers, deferred interest programs, interest-free periods, or any other offer that involves deferred payment. Overall, the grace period is an important consumer protection in Washington state, as it allows cardholders some flexibility so they can pay their bill without getting penalized with extra charges. For more information, credit card holders should consult their card statements and talk to their credit card provider for more details about their grace period policy.

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