Grace Period

A grace period is a set span of time after a payment due date during which you can pay without facing penalties or extra charges. It provides a safety net if you're slightly late, allowing you to settle bills without impacting your credit score or accruing late fees. Grace periods are commonly offered for loans, credit cards, or insurance payments, giving you flexibility to manage your finances without immediate consequences. Once the grace period ends, late fees or interest may start to accrue, and the account could be considered overdue.