@neveroptedin Pay less than your full balance, and your next purchase can start collecting interest the day you make it. Did your card ever do this? Do ... See more
The claim
Credit card companies are not required to give a grace period, and on most cards a cardholder who pays less than the full balance by the due date typically forfeits grace period status, after which interest is charged on the unpaid balance and on new purchases starting on the date each purchase is made.
The receipt
Credit card companies are not required to give a grace period. However, most credit cards provide a grace period on purchases.
If you lose your grace period by not paying your balance in full by the due date, you will be charged interest on the unpaid portion of the balance. You will also be charged interest on purchases in the new billing cycle starting on the date each purchase is made.
However, if a cardholder pays less than their full balance by the payment due date or takes a cash advance or balance transfer, they typically forfeit grace period status, at which point the card account will be in revolving status, where unpaid balance amounts may be subject to interest charges.
In 2024, consumers were assessed $160 billion in interest charges, up from $105 billion in 2022.
What the sources don't say
Neither source says issuers "take away" a grace period. The wording is that a cardholder loses or forfeits it — by paying less than the full balance by the due date, or by taking a cash advance or balance transfer. And "most cards" is the CFPB's own hedge: it isn't every card.
What you can do
Check your cardholder agreement for the section on how to avoid paying interest on purchases — it spells out whether your card has a grace period and what ends it.
Consumer info, not financial advice.