A credit-card grace period is the fee-free period during which a purchase can avoid interest if the balance is paid in full.
Under common credit-card arrangements, the grace period runs from the end of a billing cycle to the payment due date. To benefit from it, the cardholder generally must pay the full statement balance by the due date. Carrying a balance can cause interest to apply, and new-purchase treatment depends on the card agreement.
Grace periods are not guaranteed for every transaction or every card. Cash advances and balance transfers commonly begin accruing interest immediately or under different terms. A card’s agreement explains whether it offers a grace period for purchases and how it calculates interest.
The grace period is different from a billing cycle. The billing cycle records transactions; the grace period is the later interval before payment is due.