This Little-Known Benefit About Your Credit Card Can Save You Money

A young woman making a call with her credit card and a laptop.

Image source: Getty Images

Did you know that your credit card company left you some wiggle room?

Key points

  • Credit cards are safe and convenient, but can make it easy to get into debt.
  • Taking advantage of your card’s grace period can give you flexibility as well as the ability to save on interest.
  • You can find yours by checking the Schumer box in the terms and conditions for your card.

Credit cards are a safe and extremely convenient way to pay for your everyday expenses (and earn cash back and rewards along the way), but they are not without potential pitfalls. It’s extremely easy to get into credit card debt, for example, thanks to their ease of use, acceptance nearly everywhere, and the fact they are most often unsecured lines of credit, and so are not tied to a specific asset you own (such as the way a mortgage loan is secured by the home you bought with it). So it’s important to be careful with credit cards and make every effort to pay off your balance monthly, before it’s due.

Your credit card issuer may be providing you some help in this regard. Many credit cards come with what’s known as a grace period. How does it work, and how can your grace period help you save money? Keep reading to find out.

How does a grace period work?

A grace period is the time between when your card issuer posts your credit card statement (or mails it to you, if you’re receiving paper statements) and when your payment is actually due. If your credit card offers a grace period (and not all of them do, but many of the best credit cards you’ll find have this feature), it will be at least 21 days, and could be as long as 25 days.

Discover: This card has one of the longest intro 0% interest periods around

More: Consolidate debt with one of these top-rated balance transfer credit cards

In effect, this means that as long as you pay off…

Read complete post here:
Source link