What is a grace period for credit card payments?

A grace period is an agreed-upon period of time that a credit card issuer allows their cardholder to make a payment before incurring any late fees or interest. In Texas, the grace period for credit cards is 21 days after the closing date of the billing cycle or the purchase, whichever is later. The grace period is the time during which cardholders are able to make a payment on the balance without incurring any late charges or penalty fees. The grace period does not, however, extend the due date for the payment. If a payment is not made by the end of the grace period, the cardholder will incur late fees and will be charged interest on the remaining balance. In addition, making a payment that is only partially greater than the minimum payment due will not extend the grace period. In Texas, credit card issuers are also required to give the cardholders at least 25 days from the invoice or statement date before the payment is due. This requirement gives cardholders time to review the credit card statement and make sure the charges are accurate before making a payment. It is important for all credit cardholders to understand their grace period and the other requirements of their card agreement in order to avoid late fees and penalties. And remember, while a grace period is helpful in avoiding late fees and penalties, it is not intended to extend credit beyond the due date.

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What is a grace period for credit card payments?

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