Grace Period
The time between the end of a billing cycle and the payment due date during which you can pay your full balance without being charged interest. Most credit cards offer a grace period of 21–25 days. If you carry a balance from one month to the next, the grace period is typically eliminated.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Annual Percentage Rate (APR)
The yearly cost of borrowing money, expressed as a percentage. APR includes interest plus certain fees, giving you a more complete picture of a loan's cost than the interest rate alone. For credit cards, the APR is the interest rate charged on balances carried month-to-month.
- Billing Cycle
The recurring period (usually 28–31 days) between credit card statements. Your billing cycle determines when your statement is generated and what balance is reported to the credit bureaus. Payments made during the billing cycle reduce your balance; the amount remaining on the statement date is what gets reported.
Frequently Asked Questions About Grace Period
What does Grace Period mean?
The time between the end of a billing cycle and the payment due date during which you can pay your full balance without being charged interest. Most credit cards offer a grace period of 21–25 days. If you carry a balance from one month to the next, the grace period is typically eliminated.
Is Grace Period important for my FICO® score?
Understanding Grace Period helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.