Smart credit card usage is more than spending control. It comes with several other important features and benefits. One such feature is the credit card payment grace period. This key feature helps avoid interest charges and assists credit card users in maintaining financial integrity.
Proper repayments within credit card grace periods also keep borrowers’ credit scores intact. This is a way to build a solid credit history and boost one’s overall credit profile. Missing the credit card grace period can result in late payment fees, card restrictions, a negative impact on credit scores, and loss of grace period privileges.
What is a credit card grace period?
As explained by Saurabh Puri, Chief Business Officer, Credit Cards and Lending Products, Zaggle, “A credit card grace period is the interest-free time between your billing cycle’s end and the payment due date. If you pay your full outstanding balance within this period, you won’t be charged any interest. Typically, banks allow 18-20 days after the statement date to clear dues, making timely payments crucial to avoid any extra charges.”
Hence, knowing the credit card grace period assists in avoiding interest and debt traps. Paying bills in full and keeping things simple is the best strategy for managing credit cards. Such a simple practice can help credit card users avoid extra charges, penalties, and surprises. It also helps in keeping credit scores healthy.
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