What is the correct definition for the grace period? The amount you pay for your card each year The amount of time you have to make late payments The time between when you make a purchase using the credit card and the date when the credit card company begins charging you interest.

The grace period is the magical window of time that allows you to avoid interest on your credit card purchases. Essentially, it’s the stretch between when you make a purchase and when your payment is due, during which you can pay off your balance in full without incurring interest charges. Typically, this lasts a little over three weeks, depending on your billing cycle! It's important to note that if you carry a balance on your card, the grace period won't apply to new purchases. In this case, interest will start accumulating on your existing balance immediately. So, if you're planning on using your card, ensure you pay your balance in full every month to enjoy that grace period!