[Admin]

Here's a great explanation of how grace periods work (from American Express):

What Is a Grace Period?

A grace period is the time you have before a credit card company starts charging you interest on your new purchases -- usually a period of 20 to 25 days.
But this "free ride" on finance charges does not work the same way on all credit cards. In fact, on most credit cards, you will be charged interest on your new purchases immediately -- unless you have paid off your credit card in full the previous month.


How Do Grace Periods Differ?



A card with a typical grace period...

• Has an average daily balance including new purchases as the balance calculation method. This means you pay interest on all new purchases immediately, unless you have paid your previous month's bill in full.

A card with a full grace period...

• Has an average daily balance excluding new purchases as the balance calculation method. New purchases are not included in figuring the amount of interest you owe for the current month. Unlike the typical grace period described above, you get the benefit of the grace period, whether or not you paid off your balance in full the previous month.

A card with no grace period...

• Has average daily balance including new purchases as the balance calculation method. However, with this card, you will always pay interest immediately on new purchases, whether or not you have paid your credit card bill in full the previous month.