Good terms: grace period.
Grace period – it sounds nice, doesn’t it? Like a little vacation. In a way, it is – but for your credit card interest.
Previously, we broke down types of interest that can be charged, as well as the different ways they can be applied. Now, we explain the payment window that allows you to put your credit card interest on a short pause.
Your grace period is a period of time where you won’t be charged interest on new credit card purchases – so long as you pay off your full balance before the payment due date on your statement.
Say you’re out for a coffee run. When it’s time to pay for your order, you reach for your credit card. That purchase, along with any other purchases made within the same statement period, will remain interest-free until the payment due date that’s reflected on your statement.
Be careful though ... If you don’t pay down the entire balance on time, you’ll lose the benefit of the grace period and interest will be charged on those purchases back to the date you made them. And that $2.99 cup of coffee, it’ll end up costing you more in the long run. Most Canadian credit cards offer a grace period (including all Capital One cards), so make sure to check your account terms.
Tip: Remember, not all kinds of transactions qualify for a grace period, so try to pay down those transactions (like cash advances) as soon as possible to help reduce interest charges. If you’re having a hard time keeping track of your payment due dates, payment alerts are a helpful way to stay on top of things.
* If Quick Check pre-approves a card, you can be 100% sure we’ll approve your application as long as:
a. There’s been no change in your credit file information, personal information or financial status from the time you receive your Quick Check results to the time you apply for one of our credit cards;
b. You’re at least the age of majority in the province or territory you live in;
c. Your application isn’t flagged for fraud prevention;
d. You don’t have an existing Capital One account; and
e. You haven’t applied for a Capital One account in the last 30 days or had an account with us that was not in good standing in the last year. In good standing means not past due, over limit, fraudulent, restricted, or part of a consumer credit counselling program or bankruptcy.
In some cases, we may not be able to open an account for you even though your application was approved. This can happen if we’re unable to verify your identity, or you don’t provide the required security funds if you’re approved for a Secured Mastercard®.