BANKING AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -Credit cards charge interest on any balances that you don’t pay by the due date each month. When you carry a balance from month to month, interest is accrued on a daily basis, based on what’s called the Daily Periodic Rate (DPR). DPR is just another way of saying what your daily interest charge is.

Detailed explanation-3: -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.

Detailed explanation-4: -Many credit cards offer a grace period, which is the period of time between the end of a billing cycle and when your bill is due. During a grace period, you may not be charged interest on your balance-as long as you pay it off by the due date.