The grace period can be effective when you pay your credit card debts but in cashIn addition, you must do it before the stipulated date, this will technically give you a credit without interest.
It is important to note that while you are in the grace period the bank will not be able to charge you any interest, but yes, you have to do it before the date of your payment because many times the banks are not obliged to give their clients a grace period, if you want to know more about it, continue reading this article.
What is the grace period?
First of all you have to know what the grace period isand it is basically a period of time that passes during the end of the billing cycle of the credit card and the date of payment.
According to the established rules, the period lasts about 21 days, This is made very clear by the laws that provide users with the right to check their account statement 21 days prior to the due date.
People’s finances are the most benefited along with the balance of their respective bank accounts, but for that to happen they have to know that it is possible with the grace period, it gives them access to save the charges generated by interest.
How long is the grace period?
As mentioned, the grace period has a duration of 21 days, However, something that many do not know is that it depends on the credits applied or mortgages in the grace period, the time may vary.
For example, the period can be from 1 month to 3 months depending on certain factors that usually get out of our hands, such as financial establishment and value or credit.
What happens if I decide not to pay my balance during the grace period?
If for any reason you decide not to pay the balance corresponding to your grace period before the deadline established by the bank Some debt may reach your account and therefore the bank will charge you interest for the remaining balance.
This means that in addition to paying interest on the balance that you did not pay during the billing cycle, some interest will also begin to accrue on the purchases you make with your credit card.
But there is no reason to be alarmed, it does not mean that you will no longer be able to restore the grace period, but this time it will be more difficult and it is possible that To get out of this is that you pay your credit card but in cash before the payment due date, so you will avoid a complicated situation and you will be able to enjoy the grace period as it should.
What is the billing cycle and why is it important to the grace period?
The billing cycle is vital for your grace period, legally without said cycle we will not be able to enjoy the grace period, all monthly credit card statements are included as of the due date.
It is necessary that you count 21 days prior to the payment date, in this way you will be able to know the closing date of the billing cycle, it is usually also known as the closing date.
The payment due date is when the bank has added all the transactions that you have made during the previous billing cycle, in this way it will be able to invoice you, the transactions that you have made after the closing date will be applied to the next statement of account.
If you pay the entire balance in full while you are in the grace period, the bank will not be able to apply any charge or interest to you for the transactions you have executed during the billing cycle, the bank is not going to charge you anything in exchange for the money you spent with the credit card.
Doubling the grace period is it possible?
As you read it, if you can double the grace period however it is not a very common practice and it can be difficult to do because you have to know how much money you have to spend and when you have to spend it.
To do this you have to know what date the billing cycle will be, for example if it is August 6then buy some plane tickets on the day of August 7, so the billing cycle will end next month, on September 6.
Then, during that moment, the 21-day grace period begins.so approximately the payment date would be September 27, so about 50 days will have passed since you bought said tickets until the payment due date.
With the doubled grace period, you have access to measure the movements of your purchases when you pay with your credit card and no longer have to worry about the interest that the bank decides to apply to you, but you have to do it right for this to happen.