Question
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.
Ask by Mejia Page. in the United States
Feb 25,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The grace period is the time between making a purchase and when interest starts accruing on your credit card balance.
Solution
The correct definition for the grace period is:
**The time between when you make a purchase using the credit card and the date when the credit card company begins charging you interest.**
This means that if you pay off your balance in full by the due date, you can avoid paying interest on your purchases made during that period.
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Simplify this solution The Deep Dive
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!
