Grace Period - Glossary (2024)

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Grace Period - Glossary? ›

Short definition. Grace period is the period from the date of signature of the loan or the issue of the financial instrument to the first repayment of principal.

A grace period is also typically included in mortgage and insurance contracts. During this period no late fees will be charged, and the delay will not result in default or cancellation of the loan or contract. In practice, the exact time will be noted in the contract if the loan or agreement has a grace period.

A grace period is a set length of time after the due date during which payment may be made without penalty. A grace period, typically of 15 days, is commonly included in mortgage loan and insurance contracts.

A credit card grace period occurs when you completely pay off your previous statement balance by the due date. When you do this, you can carry a balance for any purchases during the next billing cycle and you won't be charged any interest. You prove to the bank that you're good for the money you borrow from them.

grace period | Intermediate English

extra time you are given to pay money you owe without losing something or paying an additional amount: You have a 10-day grace period in which to pay your insurance premium.

A grace period is a period immediately after the deadline for an obligation during which a late fee, or other action that would have been taken as a result of failing to meet the deadline, is waived provided that the obligation is satisfied during the grace period.

For example, if your billing cycle ends on the first of each month and your bill is due on the 22nd of the month, your grace period is 21 days.

A grace period (credit) is the number of days between a consumer's credit card statement date and payment due date when interest does not accrue.

A grace period is usually between 21 and 55 days. Keep in mind that a credit card grace period isn't an extension of your due date. If you pay less than the full balance, miss a credit card payment or pay your bill late, your credit card issuer will charge you interest.

A grace period is the time between when your credit card billing cycle closes and your bill is due. In most cases, credit card issuers don't charge interest on your purchases during the grace period. Once the grace period ends, interest begins accruing on your balances if you haven't paid them off in full.

What is the standard grace period? ›

Depending on the insurance policy, the grace period can be as little as 24 hours or as long as 30 days. The amount of time granted in an insurance grace period is indicated in the insurance policy contract. Paying after the due date may attract a financial penalty from the insurance company.

A grace period is the period between the end of a billing cycle and the date your payment is due. During this time, you may not be charged interest as long as you pay your balance in full by the due date.

You can make prepayments on your loan while you are in school or during your grace period.

grace period. n. a time stated in a contract in which a late payment or performance may be made without penalty. Often after the grace period ends without payment or performance by the person who is supposed to pay, the contract is suspended.

Grace Period (noun): The period immediately after a deadline or obligation when the consequence for failing to meet that deadline or obligation is waived.

grace period. noun. grace pe·​ri·​od. : a period of time beyond a scheduled date during which a required action (as payment of an obligation) may be taken without incurring the ordinarily resulting adverse consequences (as penalty or cancellation): as.

The grace period is a window of time during which a consumer owes money to a credit card company for new purchases made during the last billing cycle but isn't being charged interest.

When your credit card is in a grace period, you won't get charged interest on purchases until after your due date. If you pay your credit card statement balance in full by the due date every month, your grace period continually renews, and you will never pay interest on purchases.

A grace period is the period between the end of a billing cycle and the date your payment is due. During this time, you may not be charged interest as long as you pay your balance in full by the due date. Credit card companies are not required to give a grace period.