Grace period

Grace period — the ~20–30 days between a card’s statement date and due date during which no interest accrues on new purchases. The catch most new cardholders miss: it applies only when the full statement balance is paid by the due date. Pay anything less and interest is charged retroactively on the entire balance from each transaction date — not just the unpaid remainder. Cash advances get no grace period at all: interest runs from the moment the cash posts, plus the BSP-capped ₱200 flat fee. The grace period is the mechanism that makes a paid-in-full card free to hold.

First used in: 3.2 · The PH credit machine