Your Money & Credit: Grace periods Most credit cards come with grace periods, which is the period of time between the initial purchase and accrual of interest. If a card has a grace period, your bill must be mailed at least 21 days before the due date. A grace period will benefit you only if you pay off your balance in full each month. The Consumer Financial Protection Bureau says: For consumers who do not pay their balance in full each month, a key determinant of their cost of credit is the grace period. It is unclear whether consumers understand that once they carry a balance into a new month, interest will be assessed on the unpaid balance from the start of the prior month. Until the consumer qualifies for the grace period again, interest is assessed on all purchases from the date of purchase. It is likewise unclear whether consumers understand that even after they pay the full amount shown on their bill, they may still owe “trailing interest” for the period from the time the bill was issued until the time the payment was received. Follow us on twitter @nonprofitdepot Blog: itsmycredit.wordpress/ tiny.cc/FixMyCredit
Posted on: Sat, 15 Mar 2014 15:09:43 +0000
Trending Topics
Recently Viewed Topics
© 2015