All credit card companies do not follow the same type of grace period. However, a lot of credit cards will charge you interest right after a purchase is made (if there’s an outstanding bill). The best way to check how the grace period on your credit card works, and indeed if it has one is to check the reverse side of billing statements and the card agreement or terms and conditions. Terms such as ‘average daily balance including new purchases’ and ‘average daily balance excluding new purchases’ are pointers to a typical and full grace period respectively.
Asides from these pointers, a credit card issuer may not explain how the grace period works in full but you should be able to learn how long the grace period lasts and if you’ll start earning interest on new purchases right after a new purchase or on expiry of the grace period.
- What is s Grace Period?
- Choosing a Grace Period that works for you