hi youtube! it's yanely here. in this video, i'm gonna be talking to you all about the grace period for your credit cards. i think this is really important to know always but i've especially found it
Pay Capital One Credit Card, helpful during the holiday season, when i'm going to be buying gifts and things for my family. so, i'm gonna use an example from you know, the recent past
something that happened to me to explain it in a little bit but first i wanna talk about what is the grace period? so, a grace period is the number of days or the amount of time that you have between the last day of your billing period and your due date that's printed on your bill. anytime that you make a purchase during your billing period, you have a grace period
right after that billing period before the due date to make any payments back on your balance due, without paying interest! let's say, for example, you only make the minimum payment or you send a little bit more than the minimum payment but less than the entire balance that you owe then you're going to be charged interest on the remaining balance.
but if you pay back the entire balance that you owe you won't be charged any interest as long as you make sure to pay it by your due date. so that's why the grace period is really nice 'cause it's a time where you get to borrow money for free basically which is kind of unheard of, right?! you're not gonna go to the bank and get a personal loan and they're going to say to you:
"don't worry about it, you don't have to pay us..." "for borrowing this money, just pay us back exactly..." "what you borrowed." no! they're gonna charge you interest - right!? nobody's gonna lend you money for free, but with credit cards (if you use them the right way) you do have the opportunity to only pay back what you borrow and to not
get charged any interest or fees. so that means you have to be paying your entire balance by your due date. so let's get back to the grace period here. my grace period on my jetblue card that's the one that i've been using all year long 'cause i'm tying to rack up on rewards points, so, that credit card i know very well. my billing period starts on the 25th of each month
and it ends on the 24th of the following month. and then the bill is - the due date that comes on the bill - is gonna be the 21st of the next month. so, there's three months here in a row that you need to know: the opening date of your statement billing period, the closing date of your billing period, and then the due date for that bill -for that billing period.
so for me, those days are: the 25th, the 24th and the 21st. so, for november it was a week of thanksgiving i think it was when i went to you know, go shopping for my mom's christmas present, and let's say the day was like november 22nd or 23rd let's say it was the 23rd. now, i see this blender that i like i wanna buy it for my mom. it costs $100. i had the money. it was great. i'm like,
"oh, i should just put this on my credit card." this is some points, right? but, if i do it on the 23rd it's gonna be during the billing period that started october 25th and ends november 24th. and that billing period is gonna be due on the due date of the 21st the next month. so, that would be december 21st. but, if i just wait, if i just wait 2 more days...
let's say i buy the blender on november 25th instead of the 23rd. then, the next billing period started. so that would be november 25th to december 24th and that's going to be due on the 21st of the next month, which would be january 21st. so, just by waiting two days, i was able to jump into the next cycle, which means that my grace period would extend to
january 21st. so we're talking a big difference here, right? it's like i would've had to pay back the hundred-dollar blender before christmas basically december 21st, if i had bought it on november 23rd, versus paying it back in next year! paying it back january 21st 2017. so right, we're talking about a difference of
an entire month that could even you know, go from one year to the next like in my case it did. once you know those - the numbers, you pretty much can figure it out for each month because it's not going to change right? for me, it's always the 25th of one month to the 24th of the next month anything that was purchased in that time
is due on the 21st of the third month, right? so, i can always figure out does it make sense to me to make a purchase right now or should i wait a couple days or should i wait until next week that way i can extend the amount of time that i have to make payments back, especially when we're talking about
making payments back without being charged interest. i hope that was clear. i hope the example helped you to understand why it's really important to know your grace period and be strategic about when you make purchases, so that way you can push back the time that you have to make payments. if you want to know more about this topic, i put some links in the
description box below that you can check out. if you have comments or questions, as always, put them in the comment section below or you can message me privately that's all i have for you guys. until next time, peace!
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