Multiple choice general knowledge

A "grace period" is…

  1. The amount of time you have between when your bill is due and when you are charged a late fee.

  2. A time period during which you can pay your credit-card bill without paying a finance charge.

  3. A period that some card issuers offer new customers that includes a low APR for the first several months.

  4. I don't know!
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A grace period is the time during which you can pay your credit card balance in full without incurring any finance charges or interest. It typically lasts 21-25 days from the statement closing date, not from the due date (which would describe a late fee period).

Keep practicing — related questions