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A grace period is the time between the end of your billing cycle and the due date for your payment, usually 21–25 days. If you pay your statement balance in full during this time, you won’t owe interest on purchases. This feature makes credit cards unique compared to many other types of loans. Grace periods reward consumers who pay in full each month by essentially offering an interest-free short-term loan.

However, once you carry a balance, the grace period usually disappears. New purchases begin accruing interest immediately if you don’t pay off the previous balance in full. This is why experts strongly advise maintaining full monthly payments. Protecting your grace period ensures credit cards remain convenient and cost-effective tools rather than expensive debt traps.

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By Quiz Coins

Health Savings Accounts provide tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical costs.

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