The grace period is the time between the end of your billing cycle and the due date, during which you can pay your balance in full and avoid interest. It typically ranges from 21 to 25 days. While it’s a useful feature for managing payments interest-free, it doesn’t define or limit how much you can spend. Your credit limit determines your purchasing power—not the grace period. Misunderstanding the difference could result in overspending or unexpected interest charges.