What is a Grace Period?
A grace period is a period of time, usually about 10 days, during which a past due amount can be paid with little or no penalty.
How do Grace Periods work?
Let's assume your credit card payment is due on December 15. You forget to make the payment. On December 20, you remember. By then, though, it's too late. Your bill is .
However, if your account has a grace period, you can make the payment and the might not assess a late fee or other penalty.
Why do Grace Periods matter?
Past-due bills often incur late fees, higher interest rates, penalties and other charges. Worst of all, the default and may charge off the balance. A grace period gives customers a chance to catch up quickly before it's too late. After that point, the might assign or sell the account to a collection agency, which try to collect the balance.might report the late payment to the reporting agencies, leaving a mark on your (and even lowering your ). In some cases, a bill get so (say, 90 or 180 days), that the considers the account in