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