Grace Period

A credit card bill often starts charging interest immediately upon the balance being due. However, some card issuers ofter a grace period. During a grace period, the balance is still considered overdue or past due, but no interest is charged to the borrower.

The grace period may be a one time courtesy extended to the cardholder or it may be a regular benefit provided for holders of cards from a certain issuer. A grace period is particularly helpful during months where spending may be exceptionally high.

Many credit card offers come standard with grace periods of 20 days for every billing statement.

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