What does the credit card grace period mean, and how do I keep it?

The grace period is the window between your statement closing date and your payment due date – usually at least 21 days – during which new purchases accrue no interest, as long as you pay your statement balance in full. It's essentially a free short-term loan the card gives you each month. The catch: you keep the grace period only by paying the full statement balance every cycle. The moment you carry a balance, most issuers suspend the grace period, and new purchases start accruing interest immediately from the transaction date until you've paid in full for a cycle or two. That's why "just paying the minimum" is so costly – you lose the free window and pay interest on everything. To protect it, pay the statement balance in full and on time, ideally via autopay. Doing so means you can use the card for rewards and convenience while paying the bank zero interest.