When I make a purchase using my credit card, how long do I have to pay before I'm charged interest?
The time period you're referring to is called the Grace Period, and it varies from company to company and, in many cases, from credit card to credit card from the same company.
For instance, as of August 8, 2008, the Chase Platinum Visa used a grace period of "at least 20 days" for purchases. Their method of computing interest is "average daily balance" but the average daily balance includes new purchases.
Also on that date, the Citi Cash Returns credit card terms and conditions stated, "At least 20 days if you pay the total balance in full by the due date every billing period. If you do not, you will not get a grace period." Their method of computing interest is also average daily balance and also includes new purchases.
Also on that date, the Capital One Platinum card terms and conditions stated, "25 days from the date of the periodic statement on new purchases (provided you have paid your previous balance in full by the due date)." They also use the average daily balance, including new purchases, to compute interest. There is also a $39 annual fee for this card.
And also on that date, the Discover More Card stated, "At least 25 days when you pay your balance in full each month." They also use the average daily balance method that includes new purchases. Unlike the Capital One card, the Discover More Card has no annual fee.
You can find more information about the Discover More Card on our Low Interest Rate Credit Cards page.
|
