- Centurion Member
- Posts: 875
- Joined: Thu Apr 30, 2009 2:32 pm
- Location: Texas
that when they say 0 day grace period what it means is that interest starts to accrue from the moment they send you the money/initiate the transfer. Following this a grace period really wouldn't matter because you would always be carrying a balance until you paid off the debt. There typically is no grace period in effect when one carries a balance.
A traditional grace period comes into play if you pay your balance off every month. Usually it's 25 days from the time the statement cycles until the payment due date; that period is the grace period, free of interest assuming that you paid your previous balance in full by the previous due date.
If for instance you paid your minimum payment only by the previous due date, you would start accruing interest on the unpaid amount following that due date and all subsequent purchases after that due date would begin accruing interest immediately (0 grace period) because you didn't pay off the previous month's balance in full.
The presence and lengths of grace periods are of greater concern to transactors (pay off balance every month) than revolvers (carry balance month to month). If you don't carry a balance, you need to have a grace period to avoid accruing interest. If you do carry a balance, it's important to know not just your interest rate but how it's calculated --- average daily balance, balance on certain date, etc. You can bet that it's most likely to be calculated with whatever methodology is most advantagous to the bank.
Hope that helps. Feel free to correct if I got anything wrong.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).
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