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Getting Back a Grace Period

Valued Member

Getting Back a Grace Period

I have been confused about this for awhile and would like to understand how it works.

 

I understand generally that a grace period (no interest charged on new purchases) is given if you PIF each month and that there is no grace period if you don't pay in full.

 

But how do you get your grace period back?  If you PIF a month after not PIF does the grace period get reestabilished?  How do you deal with any residiual interest?

Message 1 of 9
8 REPLIES
Mega Contributor

Re: Getting Back a Grace Period

By paying the full current statement balance. Residual interest is added to following statement.

Discover IT $17k / US Bank Ace (VSig) $13.5K / US Bank Cash+ (VSig) $13.5k
Sam's Mastercard $13.5k / Walmart Mastercard $10k / Blispay $7.5k PayPal Ex MC $6.1k
CareCredit 5k / Husq $5k / Cap1 QS $4.5k / Barclay Ring $4.85k / Citi DC (WMC) $7.1k
Gardening Date 7/01/16 / MyFico 08: EQ 801 / TU 777 / EX 771 / 06/08/17
Message 2 of 9
Senior Contributor

Re: Getting Back a Grace Period

It generally takes 2 cycles paid in full.

Message 3 of 9
Epic Contributor

Re: Getting Back a Grace Period

I'm not sure I'm following what people are saying...

wouldn't new purchases always have grace period and if you just pay what was not paid the previous month then it would just be the average daily balance of billing that might carry tiny bit of interest?

Message 4 of 9
Mega Contributor

Re: Getting Back a Grace Period


Creditaddict wrote:

I'm not sure I'm following what people are saying...

wouldn't new purchases always have grace period and if you just pay what was not paid the previous month then it would just be the average daily balance of billing that might carry tiny bit of interest?


Not on my cards if a balance is carried over any new purchases start accruing interest from day one. That's why I said to pay current statement balance and not statement balance as it will carry over again. That is why anything charged after the statement cut will be charged interest. By paying current statement balance the only thing not figured in is the residual interest that hadn't yet been added to the account. That is all that will be carried over but no extra interest added as current balance paid restarted the grace period.

Discover IT $17k / US Bank Ace (VSig) $13.5K / US Bank Cash+ (VSig) $13.5k
Sam's Mastercard $13.5k / Walmart Mastercard $10k / Blispay $7.5k PayPal Ex MC $6.1k
CareCredit 5k / Husq $5k / Cap1 QS $4.5k / Barclay Ring $4.85k / Citi DC (WMC) $7.1k
Gardening Date 7/01/16 / MyFico 08: EQ 801 / TU 777 / EX 771 / 06/08/17
Message 5 of 9
Valued Contributor

Re: Getting Back a Grace Period

New purchases typically do not have a grace period if you're carrying a balance.

 

The rule I have in my head is that two consecutive full payments restore the grace period.

 

Message 6 of 9
Epic Contributor

Re: Getting Back a Grace Period

silly me, that's why it's average daily balance if you are buying throughout the month!

Message 7 of 9
Highlighted
Mega Contributor

Re: Getting Back a Grace Period


user5387 wrote:

New purchases typically do not have a grace period if you're carrying a balance.

 

The rule I have in my head is that two consecutive full payments restore the grace period.

 


When you check your statement there are two options pay statement balance and pay current statement balance. By paying current statement balance that will save you some interest money.

Discover IT $17k / US Bank Ace (VSig) $13.5K / US Bank Cash+ (VSig) $13.5k
Sam's Mastercard $13.5k / Walmart Mastercard $10k / Blispay $7.5k PayPal Ex MC $6.1k
CareCredit 5k / Husq $5k / Cap1 QS $4.5k / Barclay Ring $4.85k / Citi DC (WMC) $7.1k
Gardening Date 7/01/16 / MyFico 08: EQ 801 / TU 777 / EX 771 / 06/08/17
Message 8 of 9
New Contributor

Re: Getting Back a Grace Period

And watch out for balance transfers!

The CFPB reminded yesterday that purchases on a balance-transfer card don't have a grace period on interest. Ditto for store cards that have a deferred interest purchase on them. Apparently a lot of people are getting dinged by this -
http://www.creditcards.com/credit-card-news/cfpb-warns-promotional-costs-grace-period-1282.php

 

 

Message 9 of 9