grace period(redirected from days of grace)
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2. The time after rent is due, during which one may pay rent without a late fee. The grace period for rent is usually five days.
3. In bonds, the time between the issue of the bond and the first coupon payment. This grace period usually applies to long-term bonds, where interest payments do not begin to occur for a few years after issue.
A grace period is the number of days between the date a credit card issuer calculates your new balance and the date your payment is due.
In most cases, if you have paid the previous balance in full and on time, and you haven't taken any cash withdrawals, no finance charges are added to the amount of your purchases.
If you generally pay the entire balance due on time, you may want to choose a card with a longer rather than a shorter grace period, assuming the other terms are comparable. That gives you more time to be sure your payments arrive on time.
However, a minority of credit arrangements include a minimum finance charge, even if you do pay on time. Other lenders go back two billing cycles and will add finance charges if you have not paid the full amount due each time.
The grace period on a student loan allows you to defer repayment so that the first installment isn't due until six or nine months after you graduate or are no longer enrolled at least half time. The timing depends on the type of loan.
You also have a grace period in which to pay the premium on an insurance policy before the policy is cancelled. It's usually one month after the due date.
The allotted time during which a payment can be made without penalty and without entry upon credit records as delinquent or in default.
A number of days, usually 10 to 15, that a borrower is allowed to be late in making the mortgage payment without suffering any penalty.