What is a credit card grace period?

Quick insights

A grace period is the time between the conclusion of your credit card’s billing cycle and the payment due date, during which you can pay off the balance without incurring interest or late fees. It is typically calculated using your daily APR and is usually between 21 and 25 days.

Grace periods allow you to put major purchases on a credit card while receiving an extended window of time to make payments. However, this doesn't mean you should put off paying your balance; the grace period expires if the monthly balance is not paid in full by the due date.

How long is a typical grace period for a credit card?

The average grace period for credit cads ranges from 21 to 25 days, though some promotional grace periods can extend up to 55 days when you initially receive your card. While federal law does not mandate that grace periods be offered to customers, many financial institutions choose to provide the service. If they do offer a grace period, it must be at least 21 days.

Remember that grace periods usually do not apply to cash advances or balance transfers. So, if you take a cash advance from your credit card at an ATM or in person at a bank branch, interest begins accruing the same day. Interest also starts accruing the same day a balance transfer is completed.

Can you lose your credit card grace period?

It’s important to familiarize yourself with the rules governing grace periods. For example, missing your grace period payment date by even one day can result in interest charges, plus you could get a late fee. Carrying balances transferred from other cards that are not paid off before the promotional APR ends on your credit card can also cause you to lose the grace period for that card.

If you have lost your grace period due to a one-off payment that was late by a day, this doesn’t have to be a permanent state—paying off your balance on time and in full can in many cases restore the grace period. Check your credit card’s terms and conditions for details.

Does every credit card come with a grace period?

Federal regulations require credit card issuers to mail paper statements or offer access to electronic statements at least 21 days before the minimum due date. Nonetheless, even if you pay off your balance in full before the payment date, you may still be required to pay interest. Check your card terms and conditions and look for the paragraphs prominently featured in your billing statement where it says interest charges or APR.

Options for paying down debt when no grace period is available

If your card doesn’t come with a grace period and you find yourself unable to pay off the balance in full on your card each month, consider paying more than the minimum amount each month and adopting other measures such as:

What are the grace periods on Chase credit cards?

The grace period on Chase credit cards may vary but it is at least 21 days from the end of the monthly billing cycle until your due date. Note: some Chase business credit cards may have a slightly shorter grace period of 20 days.

Chase will reinstate a grace period if you pay your balance in full for two consecutive billing cycles.

Chase offers balance transfers for select cardmembers with good credit up to 18 months—these can be useful for paying off higher interest balances on non-Chase credit cards or for important life event purchases, such as furniture for a new baby’s room or a honeymoon. One of the best ways to enhance your eligibility for credit cards with lower APR and more perks is to raise your credit score.

In summary

Grace periods can be a valuable part of responsible credit card use, potentially helping cardmembers make their payments on time and avoid late fees. Knowing your card’s grace period and APR is one of the first steps toward reducing the interest.