Credit cardholders need to be aware of its advantages and ways to reduce interest on purchases.
Many individuals face a hard time repaying their interests and overbear their expenses by mishandling. A sound understanding of the grace period will allow users to put their credit cards to best use. The grace period on a credit card is between the conclusion of the billing cycle and the due date for payment. The billing cycle is also known as the statement date, and it is the day of the month when cardholders receive billing details.
US News reports that the payment deadline is three weeks post the statement date.
No Interest Payable Before The Billing Date
The individuals need not pay interest on the purchases if they pay before the deadline. US News quoted Bruce McClary, vice president of communications for National Foundation for Credit Counselling, who said, “If you make full payment, you’ll benefit from an interest-free purchase, not having a penny more than you paid for the product.” Experts say that credit cards’ grace periods are different from grace periods on loans and other financial services. Unlike other services, the cardholders must fulfill the payment before the listed date.
Card-Holders Should Pay Before The Deadline
US News states that credit card issuers must provide a minimum 21-day grace period on every credit card under Federal Law. The cardholders have adequate time to avoid interest on any product bought within the billing cycle. Several credit cards have a grace period from 21-25 days; Capital One has a 25 day grace period. The individuals can find their cards’ grace period on the cardholder agreement in the fees and rate column. The individuals need to be fully aware of the card’s policies to prevent a felony enjoy maximum profits.
“If you carry a balance from one billing cycle to another, that balance is not going to benefit from a grace period. I haven’t personally run across a card for people with fair or good credit that doesn’t have a grace period, “ adds McClary. The cardholders should inquire about the grace period before application; they should visit the websites or consult customer representatives to get detailed information.