Once your advance credit is paid off, you can again borrow a percentage from your credit limit. This is known to be your available credit. How you repay this advance credit will affect how much money you can borrow in future. Your balance is what you owe to your lender. You can also pay it off. Each card issuer offers its own method of compensating the outstanding balance.
Interest-free grace period
The grace period for credit cards that is interest-free is the time between the close of a billing cycle (or the due date) when you will not be charged any interest on purchases made using the card. The credit card grace period applies only to new purchases. It doesn't apply to cash advances and balance transfers. After you begin accruing interest on these purchases the grace period ends and you will have to repay your entire balance.
The grace period for credit card holders is different between banks and issuers. You should always check the agreement to determine the length of your grace periods.
Rate of interest on balance carried over
If you have a credit card with a balance that has been carried over from a previous billing period, you will most likely be paying an interest rate on the amount that was carried over. The interest rate is calculated daily. The average daily balance for a given billing period is used to calculate the interest rate.
You will be charged interest for any balance that is not paid in full, but you will not lose the grace period. The interest accrues each day until you clear the balance in full. This is called trailing interest, or residual interest. This only applies to balances which are carried over from the previous billing cycle. After you have paid your entire statement balance, the interest will end.
Late fees
Late fees are a big part of credit card companies' profits. Late fees can amount to as much as 24 percent of your total monthly bill, and they are particularly burdensome for economically vulnerable customers. Your card issuer may be able to negotiate a reduced fee for good behaviour. To avoid late fees, pay your bills promptly. You can also set automatic payments through a bank or card issuer.
If you are late on a payment, please call the customer care number on the back. If you are unable reach the customer support line, you may also send a written explanation. Some cardholders have had success sending secure messages online.
Payment options
Consumers and businesses have a variety of payment options for credit cards. Online sellers of products or services may find it helpful to have several payment options. Businesses that sell recurring services or products have the option of recurring billing. This billing type can be used by most credit cards providers.