Loans & Credit

What Is a Grace Period?

A grace period is a span of time during which a payment can be made, or a balance paid, without interest or penalty. On credit cards, it is usually the time between the end of a billing cycle and the due date; paying the full statement balance within it typically avoids interest on purchases.

Credit Cards

If only part of the balance is paid, many cards stop offering the grace period on new purchases until the balance is paid in full. Cash advances usually have no grace period.

Loans and Insurance

Student loans often have a grace period after leaving school before repayment starts, and insurance policies may allow a grace period for late premiums.

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.