credit cards

What is a grace period?

 

What is a grace period?

The Bankrate.com financial term of the day is: "Grace Period"

When you buy something with a credit card, the interest may not be instant. You might have an opportunity to pay off your purchase without paying any interest. If you weren't already carrying a balance, a card's grace period puts the interest on hold for up to 30 days after the transaction. However, with cards that have no grace period, you start racking up finance charges from the moment a purchase is made.

Sometimes a credit card gives you a little breathing room from interest charges. A grace period can provide some interest-free weeks after you use the card, unless you already had a balance on it.

To find a credit card that has what you're looking for, visit the credit cards section at Bankrate.com.

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