What is Interest-free Grace Period on your Credit Card
The grace period is the length of time between the conclusion of your billing cycle and the payment due date. You can only avoid paying interest if you pay your bills on time. If you routinely make your payments on time and in full, the bank may give you a break on interest on your card for the current billing cycle. Credit card businesses are not required to provide a grace period, although in India, most banks provide a grace period ranging from 20 to 60 days. The interest-free period is also known as the grace period. It may be difficult for those who have difficulty making timely payments to make complete payments and qualify for the grace period. If you carry a balance from one billing cycle to the next, you will not be able to take advantage of the grace period on your credit card. The grace period, however, does not apply to cash advances made with a credit card provided by most Indian banks. If you use your credit card to withdraw cash, interest will be levied until the payment is entirely cleared. If you do not pay your account on or before the due date, interest will be charged on both your outstanding balance and any additional purchases made with your credit card. Dates to Remember When It Comes to the Grace Period You must be aware of the essential dates associated to the grace period in order to make interest-free payments on your credit card. All of the essential dates that you should be aware of are listed below- The date on which you get your credit card bill is known as the statement generation date. On this date, you will receive a bill that contains information about your transactions, reward points, cashbacks (if applicable), billing due date, and so on. Due Date- This is the latest date on which you can pay your credit card account without incurring any interest charges. This date represents the end of your billing cycle. Grace Days- Grace days are days that credit card companies give to cardholders as an extension of time to pay their payments after the due date has passed. This implies you may pay your credit card bill without interest even if it's past the due date. If you do not pay your payment after the grace period has elapsed, you will be charged a significant amount of interest.