In personal finance, the interest-free period on qualifying credit-card purchases is called a grace period.
A credit-card grace period usually runs from the end of a billing cycle until the payment due date. If the cardholder pays the statement balance in full by that deadline, the issuer generally does not charge purchase interest for that cycle. The exact terms depend on the card agreement and local regulations.
Grace periods commonly apply to purchases, but they may not apply to cash advances or balance transfers. Carrying a balance can also cause a cardholder to lose the grace period, meaning new purchases may begin accruing interest immediately or after a shorter interval.
In the United States, the Credit CARD Act of 2009 generally requires card issuers that provide a grace period to allow at least 21 days between sending a statement and the payment due date. A grace period is different from a billing cycle: the billing cycle measures transactions, while the grace period concerns the time available to avoid purchase interest.