Credit Card Grace Period Rights — Avoid Interest by Enforcing the Bank’s No-Interest Window
What Is It?
For many Canadian credit cards, you get an interest-free grace period on new purchases if you pay your balance in full by the due date. This gives you a legal timing advantage that is easy to lose if you carry even a partial balance.
Why It Matters
The grace period is one of the cheapest forms of short-term financing available to consumers. If you understand exactly when it applies, you can use the card without paying purchase interest at all.
What Most People Don’t Know
- The grace period usually applies only if you pay the full statement balance by the due date.
- Grace periods on purchases and rules for cash advances are not the same.
- The minimum grace period is at least 21 days for many cards under the federal framework.
Frequently Asked Questions
Do I get the grace period if I only make the minimum payment?
A: Usually no. The grace period generally depends on paying the full balance required by the card terms by the due date.
How long is the grace period?
A: FCAC guidance explains that it is generally at least 21 days on new purchases.