How Credit Cards Work: Billing Cycle and „Grace Period”

This video demonstrates how the „interest free” grace period works with credit cards, the importance of paying off the statement balance in full each month, and the hidden danger of carrying a balance.

It should also help clear up any confusion about your „statement balance” versus your „account balance”, and how and when interest is charged to your account.

Want to know more about how interest is calculated? Check out my new video: https://youtu.be/SnlHbMIWJak

Want to know how to MAKE money with credit cards? Try this one: https://youtu.be/ryZQ7P3WW2s

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