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  • A grace period exists with respect to a specific balance when you do not have to pay interest on that specific balance. Your agreement will tell you which balances, if any, are subject to a grace period.

    For balances that are subject to a grace period, as long as you continue to pay your full account balance every month by the due date listed on your bill, there will be a grace period and we will not charge interest on those balances.

    However, if you do not pay by the due date the full balance owing as of the end of a given billing period, there will be no grace period and you will owe interest on the unpaid balance from the end of that billing period. After the end of that billing period, all charges will accrue interest from the date you make them. To take advantage of the grace period again, you must pay your full account balance on time for the number of billing periods stated in your agreement.

    Consumer Financial Protection Bureau - Cite This Source - This Definition
  • Browse Related Terms: Bill, Billing period, Due date, Fixed-rate APR, Grace Period, index, Late payment, Minimum interest charge, Minimum Payment, Variable-rate APR

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