Consumer Comeback Blog

Credit Score Glossary: Grace Period

Grace Period: The time during which no interest is charged on a credit card or the time you’re given to pay a bill or loan in full and avoid interest charges.

A grace period can be for any number of days, and can come as a benefit to those who are usually timely in making payments because it can account for an unforeseen circumstance. An example of a grace period is not being charged for rent paid by the third of the month, if rent is typically due on the first. The time period between the first and the third would be considered the grace period.