Does Discover Have a Grace Period on Credit Cards?

A credit card grace period is the interest-free timeframe between the end of a billing cycle and the payment due date. This period allows consumers to make new purchases without incurring interest charges, provided they pay their entire balance in full. Utilizing this period effectively helps cardholders manage their finances and avoid unnecessary interest.

Discover’s Grace Period for Purchases

Discover credit cards typically offer a grace period for new purchases. This means that interest is not charged on new purchases if the cardholder pays their entire statement balance in full by the payment due date each month. The grace period usually extends for at least 21 to 25 days from the close of the billing cycle.

For example, if a billing cycle closes on the first of the month and the payment due date is the 25th, the cardholder has until the 25th to pay off the new purchases made during that cycle without incurring interest. This applies specifically to new purchases posted to the account during the current billing period.

Transactions Without a Grace Period

Not all credit card transactions are eligible for a grace period. Cash advances, for instance, typically begin accruing interest from the moment the transaction occurs or posts to the account.

Similarly, balance transfers often do not come with a grace period, and interest may start accruing on the transferred amount from the transaction date. While some balance transfer offers may include an introductory 0% Annual Percentage Rate (APR) for a promotional period, interest will begin immediately after that period concludes if a balance remains. Additionally, cash advances usually incur a fee, which is added to the balance and also accrues interest immediately.

How to Maintain Your Grace Period

To consistently benefit from the grace period on new purchases with a Discover card, cardholders must pay the entire statement balance in full by the payment due date every single billing cycle. Paying only the minimum payment due or a partial amount will result in the loss of the grace period for new purchases.

Maintaining the grace period requires diligent tracking of due dates and ensuring that payments cover the full amount listed on the statement. Setting up automatic payments for the full statement balance can be a useful strategy to ensure timely and complete payments.

What Happens When You Lose Your Grace Period

Failing to pay the entire statement balance in full by the due date results in the loss of the grace period. Interest will be charged on all new purchases from their transaction date, rather than from the end of the billing cycle.

To regain the grace period, the cardholder must pay the entire outstanding balance, including any accrued interest, in full. Once the account shows a zero balance on the statement closing date, the grace period for new purchases is typically reinstated for the following billing cycle.