ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A credit card grace period is a length of time during which you can charge purchases to your card and wait to pay for them without being charged interest. The period stretches from the end of the billing period until your next payment due date and must last at least 21 days, as mandated by the CARD Act of 2009.

Detailed explanation-2: -The grace period is the gap between the end of your credit card’s billing cycle and the date your payment is due. With most credit cards, if you pay your balance in full and have no cash advances outstanding, you won’t be charged interest on new purchases you make during this interval.

Detailed explanation-3: -During a grace period, you may not be charged interest on your balance-as long as you pay it off by the due date. Grace periods vary by card issuer, but must be a minimum of 21 days from the end of a billing cycle.

Detailed explanation-4: -The length of a grace period is typically six months, but it can vary depending on the type of loan you received. The promissory note you signed for your loan tells you the length of your grace period.

Detailed explanation-5: -A grace period falls between the time when a credit card billing cycle ends and when the payment is due. This grace period is an interest-free time frame that gives you several days to pay before the lender begins charging interest on the balance for that month.