If your car insurance policy payment is due on June 26th, for example, and you have a twenty day grace period, a payment received by July 16th will be processed, and your policy will still be in force. No harm, no foul.
Credit cards don’t work that way.
If my billing period ends on June 6th, the bill will arrive somewhere around the 10th. I have until the 26th to pay it. My twenty day grace period includes the days between the 6th and the 26th. Not after the 26 th due date.
So my credit card bill can be considered past due when I open it. If it arrives on the 10th, and payment is due on the 26th, my twenty day grace period is really sixteen days.
Don’t assume that a credit card bill’s grace period, like those for utilities and insurance, extends past the date printed next to the words DATE DUE. If you do, you’ll see the words LATE FEE on your next month’s statement.
Those handy checks
There they are, attatched to the bottom of your statement, practically shouting "use us!"
Cool, you think. My wife has the checkbook. I’ll just pay with one of these.
It’ll cost you about ten dollars, depending on the company, in the form of a mysterious debit on your next statement. You’ll have no idea what it is, even if you do examine every line item (something else the credit card companies are counting on you not to do) and find it.
Those handy checks? Do yourself a favor, and save a few bucks. Tear them off and put then in the fireplace with the unopened credit card applications.