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Valued Member
ObieGrad
Posts: 33
Registered: ‎04-04-2013
0

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?

Mega Contributor
coldnmn
Posts: 13,940
Registered: ‎08-08-2011
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Re: Getting Back a Grace Period

[ Edited ]

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

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Valued Contributor
takeshi74
Posts: 2,791
Registered: ‎06-05-2013
0

Re: Getting Back a Grace Period

It generally takes 2 cycles paid in full.

Epic Contributor
Creditaddict
Posts: 20,841
Registered: ‎10-23-2007
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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?

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Mega Contributor
coldnmn
Posts: 13,940
Registered: ‎08-08-2011
0

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.

My Wallet /US Bank Cash+ Signature $10,000/ Ace US Bank Signature $10,000 / Sam's Mastercard $8000
/ Walmart Mastercard $8000 / Discover IT $5000 / Care Credit $5000
/ Husqvarna $5000 / PayPal SmartConnect $4800 / Cap1 Quicksilver $4000 / Barclay Ring $3550
Last App 8/12/14 /

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Valued Contributor
user5387
Posts: 1,794
Registered: ‎07-01-2010
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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.

 

Epic Contributor
Creditaddict
Posts: 20,841
Registered: ‎10-23-2007
0

Re: Getting Back a Grace Period

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

Fico Scores: EQ- 682 DCU, TU 696 Walmart, EX 695 NASA(10-6-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
63 Cards and Counting :smileytongue:
Mega Contributor
coldnmn
Posts: 13,940
Registered: ‎08-08-2011
0

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.

My Wallet /US Bank Cash+ Signature $10,000/ Ace US Bank Signature $10,000 / Sam's Mastercard $8000
/ Walmart Mastercard $8000 / Discover IT $5000 / Care Credit $5000
/ Husqvarna $5000 / PayPal SmartConnect $4800 / Cap1 Quicksilver $4000 / Barclay Ring $3550
Last App 8/12/14 /

Member
printosaur
Posts: 8
Registered: ‎12-27-2012
0

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

 

 


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