Grace period
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Pay the full statement balance by the due date and the interest on purchases is zero. In the US the due date is at least 21 days after the statement; Canada guarantees a 21-day grace period too.
Carry a balance and you usually lose the grace period: even new purchases start costing interest from day one, until you pay it all off. A cash advance has no grace period at all.
From FILE 004: how credit card interest actually works.
Sources
Official and government data first. Every quote is word for word; follow the link to check it yourself.
Regulation Z §1026.5(b)(2)(ii) (eCFR) · Periodic statements
“Periodic statements are mailed or delivered at least 21 days prior to the payment due date”
ecfr.gov (opens in a new tab)Financial Consumer Agency of Canada · “How credit cards work”
“Federally regulated financial institutions must provide a minimum 21-day grace period.”
canada.ca (opens in a new tab)Experian · “Statement Balance vs. Current Balance: What’s the Difference?”
“If you pay the statement balance (or more) by the due date, you maintain your credit card’s grace period and won’t accrue interest on new purchases.”
experian.com (opens in a new tab)Regulation Z §1026.5(b)(2)(ii) (eCFR) · Periodic statements
“Periodic statements are mailed or delivered at least 21 days prior to the payment due date”
ecfr.gov (opens in a new tab)Financial Consumer Agency of Canada · “How credit cards work”
“Federally regulated financial institutions must provide a minimum 21-day grace period.”
canada.ca (opens in a new tab)Experian · “Statement Balance vs. Current Balance: What’s the Difference?”
“If you pay the statement balance (or more) by the due date, you maintain your credit card’s grace period and won’t accrue interest on new purchases.”
experian.com (opens in a new tab)