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Banking

Interest-Free Period

Also known as: Grace Period, Interest-Free Days

The grace period during which no interest is charged on credit card purchases if full payment is made.

Detailed Explanation

Interest-free period, typically 20-50 days, is the time between purchase date and payment due date during which no interest is charged if the full outstanding amount is paid. This period only applies to new purchases when there's no previous outstanding balance. Cash advances don't get interest-free period.