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Credit Card Grace Period $0 Balance Only
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If you carry a balance on your credit card from month to month, the 25-30 day grace period that almost all credit cards isn’t in effect. Only when your month-to-month balance is $0 do you get the interest free grace period that most people claim as one of the best and only reasons they use a credit card! I was pretty surprised when I was told this, in part because I’ve never carried a balance, but if I did and didn’t know I probably wouldn’t notice that I wasn’t getting the grace period.
So, all you folks out there who carry a balance, get a second card for purchases you intend to pay off with the next bill that way you can still take advantage of the grace periods.
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If I do not intend to pay something off right away, I use a 0% card. Right now I have no outstanding balances and everything is paid each month.
I heard of someone who accidentally unpaid by a penny one month, and then had to pay interest on all her new charges. That sucked!
That’s a great tip. Most folks I know who carry a balance and are trying to pay it off have switched to just one card, but they’re getting charged extra interest as a result. Oops!