The Grace Period of Secured Credit Cards

When a secured credit card has a grace period it is the time between when you purchase an item and when the card company starts charging interest. In other words, it is the number of days you have to pay your bill in full without triggering a finance charge. Not all cards have them but when they do the grace period is usually 20-25 days.

The grace period usually applies only to new purchases with no unpaid balance. However, If you carry a balance on your credit card, you may not have a grace period for new purchases. Instead, you may be charged interest as soon as you make a purchase in addition to being charged interest on the earlier balance you have not paid off.

Most secured credit cards do not give a grace period for cash advances and balance transfers. That means interest charges start right away.

Some secured card companies have stopped having a grace period. Check the fine print carefully to make sure any card you get has one. Having a grace period saves you money on interest charges especially if you pay off your bill monthly.

Be sure to get a credit card with a grace period if at all possible.