Question

What is the correct definition for the grace period?

The amount you pay for your card each year
The time between when you make a purchase using the credit card and the date
when the credit card company begins charging you interest.
The amount of time you have to make late payments
The amount of time you have to pay your secured deposit

Answer 1

The time between when you make a purchase using the credit card and the date when the credit card company begins charging you interest

Step-by-step explanation:

The correct definition for the grace period is:

The time between when you make a purchase using the credit card and the date when the credit card company begins charging you interest.

During the grace period, which is typically between 21 and 25 days, you can pay off your balance in full and avoid paying any interest charges on your purchases. This is because the credit card issuer doesn't charge interest during the grace period as long as you pay your balance in full by the due date.

It's important to note that not all credit card issuers offer a grace period, and some may have shorter or longer grace periods than others. It's also important to read your credit card agreement carefully to understand how the grace period works and when interest charges will begin to accrue on your purchases.