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If you want to avoid dealing with local currency or carrying traveler’s checks or cash when traveling abroad, an international credit card can be an asset. Having this kind of card in your wallet, which you can use both at home and abroad, can make for smoother trips overseas.

Here’s a closer look at what an international credit card is, its main features, and how to get an international credit card that’s right for you.

What Is an International Credit Card?

An international credit card is a type of credit card that you can use outside of the United States to make purchases and to withdraw cash at an ATM. The major networks that issue international credit cards include Mastercard, Visa, Discover, and American Express. Most credit cards can be used outside the U.S., but international credit cards have specific benefits designed for global travelers.

However, having an international credit card doesn’t mean you can use it anywhere in the world. The places where you can use a certain card depends on the network. For instance, Mastercard’s international cards can be used in over 210 countries and territories, whereas Visa’s global network spans over 220 countries and territories to date.

Features of International Credit Cards

Besides the fact that you can use the card overseas, here are some of the other features an international credit card may have:

International Chip and Pin

International credit cards feature an international chip and pin. Chip cards, or EMV cards (which stands for Europay, MasterCard, and Visa), add an extra layer of security to transactions.

With the chip and pin feature of international credit cards, you dip your card into the reader, then insert your PIN. This differs from in the U.S., where EMV cards come with chip-and-signature technology, which means you insert your chip and then may input your signature. Chip-and-pin is the standard most everywhere else and, as such, this is what international credit cards offer.

Welcome Offer

An international credit card might have a welcome offer featuring an attractive introductory bonus. Typically, with how credit cards work, you’ll need to spend a certain amount on the card within the first few months of opening your account in order to earn the bonus. The amount you’ll need to spend, the time frame in which you’ll need to do it, and the number of bonus rewards points you can earn will vary by card.

Travel Perks

Some international credit cards come with attractive travel perks, such as trip cancellation insurance, rental car insurance, and lost luggage insurance. They might also feature access to exclusive airport lounges around the world.

To qualify for an international credit card with some of these luxury perks, however, you’ll usually need to have a good or even excellent credit score (meaning 670 or above).

Rewards Points

While many credit cards come with the ability to scoop up rewards points, international credit cards might offer a higher credit card rewards rate for travel-related purchases. This might include hotel stays, car rentals, dining out, and booked flights. For example, you might get 5x points on these travel-related purchases, whereas other purchases earn 1x points.

Recommended: When Are Credit Card Payments Due?

Credit Card Foreign Transaction Fees

An international credit card might come with a foreign transaction fee, which is a fee that applies when you make a payment with your card in another country. This fee is typically 1% to 3% of the total cost of the purchase, and it is charged in U.S. dollars. For example, if your total purchase came to $50, then the foreign transaction fee of 3% would be $1.50, for a total of $51.50.

If you’re not careful, foreign transaction fees can easily take a bite into your travel budget. Some international cards might not charge foreign transaction fees, which can put money back into your pocket and help you avoid credit card debt that’s hard to get rid of.

How to Get an International Credit Card

To get an international credit card, follow these steps:

1.    Do your homework to see which cards are most attractive to you. Which have the best perks, lowest fees, and most enticing rewards?

2.    You’ll also want to see which cards you can qualify for. By checking your credit score, you can better determine which cards you might get approved for.

3.    Apply for a credit card. The process of how to apply for a credit card is similar whether or not it’s an international credit card. You’ll usually need to provide basic personal and financial information, such as your Social Security number and details on your income.

4.    Once your application is submitted, the credit card issuer will do a hard pull of your credit record to determine your creditworthiness, which helps inform whether your limit will be above or below the average credit card limit. Be aware that a hard pull will likely result in a temporary ding to your credit.

5.    Find out if you’re approved. If you are, you can expect to receive your new card in the mail in seven to 10 business days. Your card will have a unique account number as well as the CVV number on a credit card.

Recommended: What is the Average Credit Card Limit?

How to Choose the Best International Credit Card

What’s the best international credit card for you will depend on a handful of factors. Specifically, you’ll want to consider:

•   Where you’ll be traveling. Are you planning on using your card on business trips, and do you frequent certain countries for work? If so, there are certain countries or parts of the world where a particular international credit card may be more widely accepted. Different cards may be accepted in different locations.

•   Rates and fees. Look to see what the APR on a credit card will be. If you are likely to keep a balance, it’s particularly important that you have a good APR for a credit card. The lower the APR, the less you’ll pay in interest when you carry a balance. Also take a look at any other fees that may apply with the card, such as annual fees, late fees, cash advance fees, and, of course, foreign transaction fees.

•   Perks and rewards. Not all credit cards are equal when it comes to the perks and rewards they offer. It’s easy to be dazzled by attractive travel-related perks, but make sure they’re ones you’ll actually use. Also look at the earn rate for different categories, and see if the categories with the higher earn rates are in line with your spending habits. You want to use your credit card responsibly vs. overspending to earn rewards.

Pros and Cons of Using an International Credit Card

International credit cards have pros and cons, both of which are important to weigh. You can learn more about credit cards by exploring this credit card guide.

Pros of International Credit Cards

First, the upsides of international credit cards:

•   Less hassle when traveling: Perhaps the top advantage of using an international credit card is that you won’t need to fuss with local currency or carry around cash or traveler’s checks. Plus, if something were to go amiss, you have the usual credit card protections in place, which could allow you to dispute a credit card charge or request a credit card chargeback.

•   Opportunity to earn rewards: Many international credit cards allow you to earn rewards for your everyday spending. Plus, some may offer higher rates of rewards for travel-related spending, which could be a big benefit for frequent travelers.

•   Travel perks: As mentioned before, international credit cards can come with a host of travel-related parks. For instance, international credit cards may offer trip cancellation insurance, car rental insurance, and free upgrades on hotels and flight bookings, to name a few.

Cons of International Credit Cards

Next, consider the potential downsides of international credit cards:

•   Fees: Some international cards have high annual fees, though these may translate to more attractive perks. You’ll also want to look out for foreign transaction fees, as these can quickly add to your costs when traveling.

•   Might not be accepted everywhere: Not all retailers within a country may accept payments with an international credit card. Some retailers might still only accept the local currency or certain payment methods. Additionally, international credit cards’ networks may not include particular locations.

•   Need to plan ahead to maximize perks: While international credit cards might come with some nice travel benefits and perks, it can take a bit of work and planning to make the most of them. For instance, if you want to rake in the bonus offer, you’ll need to plan for some big-ticket purchases to put on your card within the first few months of opening it.

Or, if a card features a travel credit that expires each year, the clock is ticking to use that benefit. This all could incentivize you to overspend, leaving you in a scenario where it’s hard to pay off more than the credit card minimum payment.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

The Takeaway

Having an international credit card while traveling overseas can eliminate the hassle of dealing with foreign currency or carrying cash. When looking for a good that suits your needs, it’s important to weigh the perks against the downsides, particularly the fees involved. Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

Can I use my credit card internationally?

Yes, most credit cards can be used internationally since they are part of a global payment network such as Visa, MasterCard, or American Express. And some international credit cards have benefits that are specially designed for international travelers. Exactly which countries you can use your card in will depend on the network.

Should I withdraw cash with my international credit card?

While withdrawing cash from an international credit card is an option, note that doing so often comes at a cost. On top of the foreign transaction fee, which could be 1% to 3%, there’s also a fee that applies to cash advances, and cash advances tend to have a higher APR. Interest on cash advances typically starts accruing immediately, as there’s no grace period on cash advances. Instead, you might bring your debit card on the trip and use that to withdraw cash at a bank ATM.

How can I find out which countries accept a given card?

Check the credit card network’s international use network to determine which countries you can use your card in. You may find this on the credit card network’s website or in the app or by contacting customer service.

Do I have to pay fees annually for an international credit card?

Some international credit cards do have an annual fee. Do your homework ahead of time to see what the annual fee is, and if the perks will offset the costs. Other costs you want to check include foreign transaction fees, cash withdrawal fees, and late fees.

Photo credit: iStock/Drazen_

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOCC-Q126-054

Credit cards, when used responsibly, could enhance your financial life, allowing you to build your credit score, earn rewards, and more. Unfortunately, if you’re not careful and make credit card mistakes, using a credit card can have the opposite effect on your finances.

Here are some of the most common credit card mistakes to avoid, including some specific travel credit card mistakes to watch out for.

Credit Card Mistakes to Avoid

When using your credit card, here are some credit mistakes you could be making — plus how to avoid them by following some basic credit card rules.

1. Making Late Payments

Payment history is one of the most significant factors in determining your credit score. The more payments you miss, the more your credit score could go down.

A late or missed payment can stay on your credit report for up to seven years — unless you can prove it was a credit report mistake.

How to avoid it: Setting up automatic payments, or setting reminders can help you remember when your credit card payment is due.

2. Making Only Minimum Payments Monthly

While making minimum payments is important to avoid incurring late fees, it doesn’t allow you to avoid interest charges. In fact, by only making the minimum payment, you’ll end up paying a high amount of interest (assuming you’re not using a card in its 0% introductory period). You also risk getting further into debt if you keep using your credit card, and it could take years to pay off your balance in full.

How to avoid it: Budgeting carefully could help you pay off more than the minimum amount due, or ideally, the entire balance off, each month.

3. Misunderstanding Credit Card Interest

Interest is a key part of what a credit card is, but the way credit card interest is charged can be confusing. A credit card can have a few different annual percentage rates (APR) depending on the type of transaction, including on purchases, cash advances, and balance transfers.

The bottom line: To avoid interest on new credit card purchases, pay off the balance in full each month. You’ll owe interest on any amount you carry over.

How to avoid it: Check your credit card agreement to understand how interest is charged, and aim to pay off your balance in full to avoid incurring interest.

4. Ignoring Your Credit Card Agreement

Credit card agreements contain important details like fees, your credit limit, and other important terms you’ll benefit from knowing. Ignoring credit card terms could lead to nasty surprises, like fees you didn’t anticipate paying.

How to avoid it: Set aside time to read your credit card agreement, and contact your credit card issuer if you have any questions about how credit cards work.

5. Neglecting Your Monthly Statement

Reading your monthly statement is important to staying on top of your credit card account. For starters, it includes a lot of important information, such as your statement balance, the amount of your minimum payment owed, and your payment due date. Plus, regularly reviewing your credit card statement can help you spot signs of fraud.

How to avoid it: Set reminders to look at your monthly statement to see how much you owe, and dispute credit card transactions you didn’t approve.

6. Getting Close to Your Credit Limit

Your credit card limit is the amount that you can charge your card. If you get close to hitting your limit, it could hurt your credit score because you’ll have a higher credit utilization ratio. This ratio compares your balance to your available credit, and the higher it is, the more adversely it could affect your score.

How to avoid it: Monitor your balance to ensure you’re not close to your limit — ideally, you’re only using up to 30% of what’s available to you or less. Some financial experts suggest using no more than 10% of your limit.

7. Applying for Multiple Credit Cards at Once

Each time you apply for a new credit card, lenders will conduct a hard inquiry, which tends to temporarily lower your credit score. While this dip might not make a huge difference, applying for multiple accounts could cause lenders to take pause. It can possibly give them the wrong impression as to why you want so many new cards.

How to avoid it: Get preapproved for a credit card before applying to see your chances of getting approved before submitting a full application.

8. Applying Without Comparing Credit Cards

There are many benefits and features that come with credit cards, and without comparing them, you may end up opening a card that’s not the right fit. Shopping around and exploring different credit card rewards can help you understand your options and make a more informed choice.

How to avoid it: Take the time to think about the features you want the most from a credit card and do some research to narrow down your choices before applying.

9. Canceling Your Card on a Whim

Canceling a credit card could mean the issuer will require you to pay off your entire balance with interest. Plus, it could affect your credit utilization ratio since it will lower your overall credit limit. Canceling a credit card also could shorten the length of your credit history, which is another factor used when calculating credit scores.

How to avoid it: Consider the consequences of canceling your credit card, and make sure to pay off the entire balance before you do so.

10. Not Reporting Lost or Stolen Credit Cards Instantly

The longer you go without reporting a lost or stolen credit card, the more likely you may be responsible for fraudulent changes that show up. Some credit card companies waive all fraudulent charges (or up to $50 worth) as long as you’re quick to report.

How to avoid it: As soon as you notice your card missing, report it to your credit card company, and then continue to monitor your statements for any fraudulent charges.

11. Loaning Your Credit Card

When you give your credit card to someone else to use, you’re still responsible for the charges made on it. If the person you lent your credit card to doesn’t pay you back, then you’re stuck with the bill. The same applies with an authorized user on a credit card — you’re the one ultimately responsible for paying even if you didn’t make the charges yourself.

How to avoid it: Don’t let anyone borrow your card, and if you do, ask them to pay you upfront for the changes they intend to make.

Travel Credit Card Mistakes to Avoid

In addition to the mistakes above, take care to avoid these particular mistakes if you have a travel rewards credit card.

12. Overspending

To earn welcome or bonus offers, credit card companies typically require you to spend a minimum amount within a certain period of time. If you don’t plan ahead properly, you could end up making unnecessary purchases and racking up charges you can’t afford to pay off.

How to avoid it: Have a plan for how you’ll meet the minimum spending requirements, such as by timing a necessary big purchase with opening a new card.

13. Underspending

On the opposite spectrum, opening a new credit card and not meeting the minimum spend requirements could mean you’re disqualified from earning the welcome bonus. This would mean passing up a big benefit of getting the card.

How to avoid it: Review your spending habits before opening a credit card to ensure you can meet the card’s minimum spending requirements.

14. Spending Points vs Paying a Low Cash Price

Redeeming your credit card points is fine, but spending them on low-value rewards may be a waste. For example, you might be able to book a flight or hotel at a much lower price in cash than you’d get if you used points for the purchase.

How to avoid it: Research reward redemption options to maximize the value from the points you’ve earned.

15. Not Using Your Benefits

Travel credit cards can offer other perks, such as annual credits toward travel and free stays at hotels. However, you’ll typically need to take advantage of them within a year, and they won’t roll over. In other words, if you don’t use these benefits in time, they’ll go to waste.

How to avoid it: Read your credit card agreement to see what additional benefits you can take advantage of.

16. Losing Your Points

Some points earned through rewards programs expire. In other cases, you’ll automatically lose your points when you decide to cancel your credit card.

How to avoid it: Use up your points before canceling your card, or check if they expire and make sure to use them up in time.

Recommended: What Is a Charge Card?

17. Failing to Transfer Points

Most card issuers allow you to transfer points to travel partners like airlines and hotels. This can offer a greater value for your points compared to what you’d get through the card issuer’s travel portal.

How to avoid it: Before booking travel, check whether it’s more valuable to book through the card issuer’s travel portal or by transferring points instead.

18. Not Understanding Credit Card Bonus Categories

Many travel credit cards offer bonus points if you spend in certain categories. These bonus rewards tend to vary for different cards. Not understanding what each card offers could result in losing out on earning extra points.

How to avoid it: Read through the terms and conditions of each travel credit card you own to maximize your earnings.

19. Redeeming Points at Low Value

Not all points are created equal. You might not get the same value from your travel points if you redeem them for a gift card as opposed to redeeming with partner hotels or airlines, for instance.

How to avoid it: Do your research on how best to redeem your rewards for your credit card, to get the most value.

Recommended: When Are Credit Card Payments Due?

The Takeaway

Knowing and avoiding common credit card mistakes can be a good way to avoid excessive credit card debt and keep your finances in good order. Responsible use of credit can be a foundation of financial fitness. What’s more, avoiding credit card mistakes can also help you enjoy perks, like rewards, that come with your account.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

What are some of the most common credit card mistakes?

Some of the most common credit card mistakes include not making payments on time, only making the minimum payment, and not understanding the terms of your credit card agreement.

What credit card mistakes can damage my credit?

Major factors that can damage your credit include late or missed payments, having a high credit utilization ratio, and having too many new credit inquiries. Making these mistakes can lead to damage to your credit.

Can problems arise from not using my credit history?

Having a lack of credit history could make it harder to qualify for credit cards, loans, and even housing. Or you may only qualify for cards and loans with higher interest rates.

Photo credit: iStock/Mikolette

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOCC-Q126-020

A credit card management app can be a powerful tool for anyone juggling multiple credit cards, trying to pay off debt, or looking to maximize rewards. These digital tools bring all your credit card data — balances, due dates, transactions, and rewards points — into a single, easy-to-manage interface. Below, we explain what a credit card management app is, offer examples, and highlight why you might use one to streamline your financial life.

What Is a Credit Card Management App?

A credit card management app is a digital tool designed to centralize, track, and optimize the use of one or more credit cards. These applications generally fall into two main categories:

•   Budgeting and debt payoff apps: These apps focus on helping you manage your credit card spending and any existing debt. They typically sync up to your credit cards and track recent credit card transactions, minimum payments due, and payment due dates. They can help you see where your money is going each month and help you set and stick to a budget. Examples include: YNAB, Debt Payoff Planner & Tracker, and Quicken Simplifi.

•   Credit card rewards apps: These apps are designed to consolidate, track, and optimize points, miles, and cash-back rewards across multiple credit cards into one interface. They can help users maximize rewards by advising which card to use for specific purchases, tracking rewards balances, and alerting users before they expire. Examples include: AwardWallet and MaxRewards.

Many credit card management apps offer a free version, but you generally need to pay a fee to access all the bells and whistles. Monthly fees can range from about $2 to $15. You can often get a discount by paying for a full year up front.

Common Features of Credit Card Management Apps

Here are some common features of credit card management apps:

•   Syncs to your credit card accounts. By linking your credit card accounts to the app, you can track transactions, such as recent purchases and refunds. Plus, you can see when your payments were posted.

•   Tracks your payment due dates. Many money management apps enable you to monitor when your payments are due. This might be a calendar view or a list of all your payment due dates and amounts.

•   Credit score and monitoring. Some money management apps offer free credit scores and credit monitoring, alerting you of when your score goes up or down. These alerts can help you pinpoint financial habits and patterns that might be impacting your score.

•   View credit card balances. A credit card management app can show not only your credit card balances and interest rates, but also your current credit utilization. Your utilization is how much of your available credit you’re using, and a key factor in your credit scores.

•   Tracks credit card points and travel rewards. Apps that track credit cards specifically can help you make the most of your credit card rewards. There are apps that also help you maximize your rewards points earnings on every card.

Benefits of Credit Card Management Apps

Adding a credit card management app to your toolkit comes with a number of perks. Here are some to consider:

•   Keeps you organized. You don’t have to muddle through a pile of credit card and bank statements to make heads or tails of when your payments are due and what purchases you put on your cards.

•   Makes it easier to keep track of credit usage. By using a single app, you won’t have to log on to all your different credit cards to see how much you owe on your balances and your current credit utilization ratio.

•   May help pay off credit card debt quicker. Some credit card apps have handy features to help you knock down debt at a faster pace. For instance, the app might detect “extra funds” you have in a given month. That’s money you can put toward one of your outstanding balances.

•   Helps you avoid falling behind on payments. With due dates and reminders set on your app, you won’t be scrambling to remember when you need to pay off each credit card bill. If you’ve automated your credit card payments, reminders can help you make sure you have enough funds in your checking account to cover an upcoming transfer.

Reasons to Use a Credit Card Management App

Here are a few reasons why you might want to consider linking up your credit card accounts to a credit card management app.

•   Tracking your transaction history at a glance. Instead of muddling through a stack of credit card and bank statements, you can see your recent purchases through a credit card management app.

•   Understanding your financial behaviors better. You can gain a better understanding of your spending habits (such as impulse buying) and how much credit card debt you owe at a given time.

•   Organizing your credit card account. You can stay organized with the payment schedule and the minimum payment amounts.

•   Managing debt. Some credit card management apps include debt tracker tools to help you monitor your progress on your different cards.

•   Optimizing credit card rewards. Credit card management apps might help you find ways to maximize your credit card rewards. You can calculate your rewards, stay on top of deals and offers, and integrate loyalty programs.

The Takeaway

A credit card management app can help you keep tabs on your credit cards without having to log in to multiple credit card apps or sites or maintain a complicated spreadsheet. These apps can help you stay on top of payments, monitor your credit usage, and make the most of a card’s rewards and perks.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

What is the app that combines all your credit cards?

Apps that combine all your credit cards generally fall under the category of credit card management apps. These digital tools centralize information from multiple accounts in one interface. They can track due dates, balances, transactions, and credit utilization. Some focus on budgeting and debt payoff, while others specialize in optimizing rewards points and miles across different cards. Popular examples include YNAB, AwardWallet, and MaxRewards.

Is it safe to have a credit card app on your phone?

Generally, yes. Apps from reputable financial institutions or well-known third-party developers typically use strong security measures like encryption, multi-factor authentication, and biometric login (fingerprint/face ID) to protect your data. However, no digital platform is 100% foolproof. To mitigate risks, ensure you use strong, unique passwords, enable biometric identification, and only download apps from official app stores.

How do I manage all my credit cards in one place?

One way to manage all your credit cards in one place is to download a credit card management app. These apps centralize data from multiple accounts, allowing you to track balances, due dates, credit utilization, and transactions within a single interface. Some apps focus on budgeting and debt payoff, while others specialize in optimizing rewards and perks across your different cards. By linking your accounts, you gain a unified view of your credit health and financial activity.

Photo credit: iStock/Mindful Media

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOCC-Q126-019

A credit card’s grace period is the length of time between the end of a billing cycle and when your payment is due. During this period, which is usually about three weeks, you can pay off the balance without incurring interest or late fees. If you don’t pay your full statement balance by the due date, however, your grace period expires and you’ll owe interest on your balance, as well any new purchases you make.

Below, we take a look at how grace periods on credit cards work and how you can take full advantage of them.

What Is the Grace Period on a Credit Card?

Credit cards allow you to borrow money over the course of a one-month billing cycle, during which you may not need to pay interest. The end of your credit card billing cycle is also called your statement date. That’s when your monthly credit card statement (aka your bill) is generated and available online. Unless you’ve signed up for paperless billing, it will also be mailed to you. Credit card payments are due on the payment due date, about three weeks later. The time in between these dates is what’s known as the grace period.

During this time, you won’t be charged any interest on the purchases that you made during the billing cycle. However, because of how credit card payments work, you must pay off your credit card’s statement balance in full by your payment due date in order to avoid interest payments. At the very least, you must make your minimum payment, and you’ll then owe interest on whatever balance you carry into the next month.

How Credit Card Billing Cycles and Grace Periods Work

Credit card issuers are not legally required to offer a grace period. However, many of them do. If an issuer does choose to offer a grace period, it must be at least 21 days.

If your card offers a grace period and you pay your full statement balance by the due date, you can avoid paying interest on your purchases. In addition, the grace period renews for the next billing cycle. If you pay the next cycle’s bill in full by the due date, it renews again. If you continue this pattern, you can avoid paying interest on your credit card.

Limits on Credit Card Grace Periods

Credit card grace periods typically only apply to purchases. That means if you’ve used your credit card to get a cash advance at an ATM, for example, you’ll have to start paying interest on the date of the cash advance transaction.

It’s also important to note that grace periods aren’t guaranteed. If you don’t pay your full statement balance by the due date, you lose your grace period and will be charged interest on the unpaid portion of the balance. You will also be charged interest on any purchases you make in the new billing cycle starting on the date each purchase is made.

Recommended: Tips for Using a Credit Card Responsibly

How Long Is the Typical Grace Period for a Credit Card?

Grace periods generally last at least 21 days and up to 25 days. Some card issuers may offer a promotional grace period when you first get your card, which can be as long as 55 days.

You can find out how long your grace period is by reviewing your monthly billing statement. The statement will list the “closing date” (when the billing cycle ends) and the “payment due date”. The time between these dates is your grace period. You can also find out how long your grace period is by checking your original cardholder agreement. The length of your grace period should be listed alongside fees and your annual percentage rate (APR). You can also call your credit card company and ask them directly.

What Types of Transactions Are Eligible for Credit Card Grace Periods?

Generally only purchase transactions are eligible for the credit card grace period. Cash advances — which allow you to borrow a certain amount of money against your line of credit — typically are not eligible. They will start accruing interest the day you make the transaction.

Similarly, if you transfer a balance from one credit card to another, you’ll start to accrue interest on that balance immediately. The only exception is if you have a balance transfer credit card with a 0% introductory rate for a period of time. If you pay off the balance during that period, you won’t owe interest. However, interest will accrue on whatever remains of your balance at the end of that period.

Taking Maximum Advantage of Your Credit Card’s Grace Period

To take full advantage of your credit card’s grace period, you might time any large purchases you need to make for just after your statement closing date, which is right at the beginning of the new billing cycle.

For example, if your statement closes on the 15th and you buy a large item on the 16th, that purchase won’t appear on a bill until the next closing date (roughly 30 days later). You then have the standard 21 to 25 day grace period to pay that bill, effectively giving you nearly two months of interest-free borrowing.

If you always pay your statement balance by the due date, you can extend your grace period indefinitely.

Can You Lose Your Credit Card’s Grace Period?

Yes, you can lose your credit card grace period if you don’t make on-time payments in full each month by the payment due date. If you lose your grace period, you’ll be charged interest on the remaining portion of your balance. In the new billing cycle, you’ll also owe interest on any new purchases on the day the transaction takes place. This can trap you in an expensive cycle of debt that can be hard to get out of.

Fortunately, card issuers will typically restore your grace period once you’ve paid your full statement balance for one or two billing cycles.

The Takeaway

Your credit card grace period is an important tool that can save you money on interest if you pay off your statement balance in full each month. If you don’t pay your balance in full each month, you could lose this privilege temporarily. This means you’d end up owing interest on your remaining balance and any new purchases.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

What is the grace period for credit card payments after the due date?

Credit card grace periods occur before the payment due date. Payments made after that date are considered late. After the due date, cardholders will owe interest on their balance. Further, they may lose their grace period until they can pay their balance off in full for one or two months.

What happens if you are one day late on a credit card payment?

Being one day late on a credit card payment typically triggers a late fee and the potential the loss of your grace period, meaning you’ll owe interest on your balance. However, it shouldn’t negatively impact your credit. Credit card issuers typically only report late payments to credit bureaus once they are at least 30 days past due.

What is the typical grace period for a credit card?

A credit card grace period is the interest-free window between the statement closing date and the payment due date, which is typically 21 to 25 days. Some issuers may offer a longer promotional grace period, sometimes up to 55 days, when you first open the account. You can confirm the exact length of your card’s grace period by checking your monthly billing statement and looking at the time frame between the statement closing date and the payment due date. You can also find this information in your original cardholder agreement or by contacting your credit card company directly.

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If you have an active credit card account, you might receive unsolicited credit card convenience checks. A credit card convenience check lets you draw a portion of funds from your available credit limit without swiping your card.

Although convenience checks offer the benefit of using your credit toward other bills — either as a cash advance or a check-based payment for a purchase — they also come with their fair share of factors to consider. Keep reading to learn more about what a convenience check is and how to get one from a credit card.

What Is a Credit Card Convenience Check?

Also known as cash advance checks, access checks, or balance transfer checks, credit card convenience checks let you borrow money against your credit card limit.

Card issuers offer this option as a way to encourage spending on your credit card account. You can use these checks to pay bills, borrow money, make a balance transfer, or transfer loans to your credit card.

Recommended: When Are Credit Card Payments Due?

Pros of Credit Card Convenience Checks

Convenience checks have certain benefits, including:

•   They let you make purchases when using a credit card isn’t accepted.

•   You can use one to pay off other debt.

•   You can access cash quickly with a convenience check.

•   A convenience check borrows against your existing credit line, so you don’t need to undergo a credit check for a new line of credit.

Cons of Credit Card Convenience Checks

There are also a number of drawbacks of convenience checks to be aware of before using one. These include:

•   You’ll incur an additional fee each time you use a convenience check.

•   Using a convenience check might activate a higher credit card APR for the check amount.

•   You don’t get a grace period, so you’ll start incurring interest immediately.

•   You’ll have fewer protections if your purchase is defective and you need to withhold payment.

•   Your check purchase might not qualify as an eligible purchase under the card’s rewards program.

Factors to Consider Before Getting a Credit Card Convenience Check

Since convenience checks are treated like a cash advance by your credit card issuer, you’ll incur cash advance fees when the funds are drawn from your account. For example, your card issuer or bank might charge a minimum fee of $10 or 3% to 5% of the check amount, whichever is greater. Also, if you exceed your available limit and don’t have sufficient funds in your credit card account, you might be charged another fee.

On top of these extra fees, the interest on the check amount accrues immediately at your cash advance APR. Cash advance interest rates are typically higher than the APR charged for swiping your card for purchases at places that accept credit card payments.

If your account is a rewards credit card, purchases or draws using a convenience check are often ineligible for earning rewards. So not only are you paying more money to use the check, you’re losing the benefits of your rewards credit card program.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score?

How to Get Convenience Checks From a Credit Card

You’ll often get convenience checks in the mail. If you have an existing credit card account, your card issuer might include the checks in your monthly statement. A card issuer might also mail you a promotional offer with convenience checks inside to encourage you to apply for a credit card.

If you have an existing credit card account but haven’t received convenience checks in the mail, you can request them directly. Contact the phone number printed on the back of your credit card, log onto the credit card issuer’s website, or check its app to reach a customer service agent. Make sure to ask about fees you might incur by requesting printed convenience checks, as different types of credit cards carry different fees.

Using Credit Card Convenience Checks

There are many ways to use a convenience check, including:

•   Using it as a cash advance. In this case, you’d write a convenience check to yourself and cash it to access physical currency.

•   Using it to pay off other debts. This could include a loan or other credit card balance. In this scenario, the convenience check acts like a balance transfer vehicle that pays off a third-party credit account. You’ll then repay that balance, plus fees and interest, through your card issuer that provided the checks.

•   Using the checks to pay for goods and services directly. This might come up if you’re dealing with a merchant or vendor that doesn’t accept credit card payments but accepts checks.

If you decide to use a convenience check, it’s more like a physical check from your personal checking account as opposed to how credit cards work. A convenience check has the same familiar fields as a personal check, including a place to write in the date, payee name, amount, optional memo, and your signature.

How Credit Card Convenience Checks Can Affect Your Credit Score

A convenience check borrows money against your existing credit card line, so your credit isn’t verified when using a check. Since convenience checks let you access your credit line through another method other than swiping or tapping your card, they can encourage you to borrow more from your account.

If you borrow large amounts from your credit card account, it can increase your credit utilization ratio. Keeping a high credit utilization ratio could negatively impact your credit score. However, if you repay your balance responsibly and are mindful of your utilization — both key credit card rules to follow — convenience checks may have minimal impact on your credit.

Alternatives to Credit Card Convenience Checks

Although convenience checks are a viable option when you need cash, there are other lower-cost options.

Personal Loans

Borrowing a personal loan gives you access to cash at what is probably a lower, fixed APR compared to the variable cash advance APR from your credit card. However, you’ll need to undergo a credit check and have strong credit for the most competitive rates.

Earning Extra Income

If time is on your side, increasing your cash flow can help you avoid high interest charges and fees for your next large purchase. Consider selling items that are taking up space in your garage, picking up extra shifts at work, or perhaps starting a side gig, like tutoring, for some additional income.

The Takeaway

A convenience check can be a fast way to access cash or make a purchase when a credit card isn’t accepted. However, the disadvantages of using convenience checks, like costly fees, increased APR, and no grace period, often negate the perks.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

FAQ

Is a convenience check linked to your account?

Yes, convenience checks from credit card companies are tied to an existing credit card account you have with that card issuer. The amount that you write on a convenience check will directly be added to your credit card balance, plus potentially fees and higher interest charges.

Can I write a convenience check to someone else?

Yes, you can write a convenience check out to another person or business as a method of direct payment. For example, you can use a convenience check to pay for a utility bill or for rent to your landlord. However, keep in mind that this will mean you’ll pay more toward that purchase because of fees and a higher APR.

Where can I cash a convenience check?

You can cash a convenience check anywhere you would cash a personal check. Your personal banking institution can cash the check for you, or you can visit a third party, like a check-cashing establishment.

What are the disadvantages of using credit card convenience checks?

One big disadvantage when using a convenience check from your credit card company is the added fees and interest you’ll typically pay. Each check incurs a flat fee or a fee based on a percentage of the check amount. Additionally, convenience checks are considered a cash advance, which incurs a higher APR on the borrowed amount. Plus, there’s no grace period so interest starts accruing immediately.

Photo credit: iStock/Ivan Pantic

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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