Once you pay your balance in full every month, you’re acquiring a free loan from your bank from the time you buy to the due date for which payment cycle. Now, Federal Law needs that banks provide a twenty-one day grace period between the dates of the bill is due, and the statement closes.
Thus, if you purchase a day before the cycle closing date, you’ll have twenty-one days to shell out for it before incurring interest. Finish the transaction the day after the closing the cycle, and you’ll have an extra month until the next period closes, plus another twenty-one days off your balance.
The tip is once you get towards the end of the cycle, it pays to hold off on main purchases. Through delaying your spending for a couple of days, you can acquire extra time until the payment is due.