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What is an Extended Grace Period?
An Extended Grace Period is a customer-friendly billing feature that places your payment due date at least 25 days after the billing cycle closes. It gives you more time between the statement close (when the bank totals your charges for the cycle) and when payment is required. This extra time helps with cashflow planning, reduces the chance of late payments, and—when you meet the terms—can allow you to avoid interest charges on new purchases.
How the grace period works — simple explanation
Most credit card or low-interest billing cycles operate with a statement close date and a subsequent payment due date. With an Extended Grace Period:
- The billing cycle closes (for example) on the 1st of the month; the new statement is generated.
- Your payment due date will be set at least 25 days later (for example, the 26th of the same month), giving you a guaranteed minimum window to pay.
- If you pay the full statement balance by the due date, you generally avoid interest on new purchases posted during that previous cycle.
Key benefits of an Extended Grace Period
Improved cashflow
Combine pay cycles with vendor payments or payroll schedules — the extra days give businesses and households breathing room to manage outgoing cash.
Lower interest risk
By paying the statement balance in full by the extended due date, you can avoid interest charges on new purchases tied to that statement.
Predictable payments
Longer and consistent payment windows make budgeting easier and reduce chances of missed due dates.
Example timeline (how 25 days looks in practice)
Billing cycle: May 1 — May 31 (statement closes May 31)
Due date (with Extended Grace Period): June 25 (at least 25 days after May 31)
What happens if you pay in full by June 25: No interest on new purchases included in the May statement. If you carry a balance, interest rules will apply as described in your card agreement.
Practical tips
- Set automatic payments for the full statement balance to keep your grace period active.
- Watch out for cash advances or promotional balances — these may have different terms and might start accruing interest immediately.
- Use the extra time to reconcile business receipts or wait for incoming payments before settling the statement.
Important rules & exclusions
While the Extended Grace Period provides valuable extra days to pay, it is subject to standard billing rules and some important exclusions:
- Carryover balances: If you start the new cycle with a carried balance (you didn’t pay the prior statement in full), the grace period on new purchases may not apply and interest may accrue immediately.
- Cash advances & transfers: Cash advances, balance transfers, and certain promotional balances often do not have grace periods and may accrue interest from the transaction date.
- Eligibility & changes: Availability of the extended grace feature depends on account type and program. Heritage may change terms; always review the current card agreement.
How to maintain your grace period
To preserve the Extended Grace Period and avoid interest:
- Pay the full statement balance by the due date every cycle.
- Avoid carrying balances between cycles whenever possible.
- Enroll in automatic full-balance payments or set a calendar reminder a few days before your due date.
