This Post comes from Michael, chief editor of DoughRoller.net, which helps consumers find the best online banks available today.
If you’ve been wondering what a credit card “grace period” is, don’t be ashamed. Many credit card ads can be confusing, appearing quickly on television commercials and rattling off small print in the seconds before Law & Order returns. Grace periods are one aspect of a card agreement very important to consumers.
First, let’s take a look at the financial mechanism known as the credit card. When you purchase any item, be it dinner, a movie ticket or box of tissues, the credit card company makes you loan in the amount of the purchase, and releases that amount of funds to the merchant. The merchant, in turn, gives you whatever it is you’ve purchased.
The amount of the transaction is added to your card balance. Your card balance is a running tally of the small loans the issuer has made to you for every transaction, the total amount loaned. Like any loan, the loan card issuers make to card carriers comes with an attached interest rate. Interest rates on credit cards can vary largely based on the card company, whether or not the card offers a rewards program (card companies often subsidize rewards with hire interest rates), and the credit history of the card carrier. Rest assured, however, that credit card balances will almost always carry the highest interest rate of any loan you’ll see. And, they’ll certainly top how much your pennies are earning in a savings account. Whatever that rate is, it’s generally applied once a month. If the balance is paid in full, however, no interest is charged. Continue Reading »


Starting October 1st, Discover has increased the length of the 0% APR balance transfer term on the Discover More card to 18 months. This is an increase of 3 months and, along with the Citi Platinum Select card, the Discover More card now shares the title of longest 0% balance transfer offer. However, while the length of these 

