# Grace Period

*Borrowing & Credit — Finicade finance glossary*

A grace period is the window between a statement closing and the payment due date during which no interest accrues on new purchases — typically 21–25 days. It only survives while you pay in full: carry a balance and most issuers charge interest on new purchases from the day you make them until you're back to zero for a full cycle. Cash advances and balance transfers usually have no grace period at all, accruing interest immediately.

**Also known as:** interest-free period, payment grace period

**Related terms:** [Credit Card](https://finicade.com/glossary/credit-card), [Cash Advance](https://finicade.com/glossary/cash-advance), [Minimum Payment](https://finicade.com/glossary/minimum-payment), [Late Fee](https://finicade.com/glossary/late-fee), [APR (Annual Percentage Rate)](https://finicade.com/glossary/apr)

Source: https://finicade.com/glossary/grace-period