What is the time period during which no interest is charged on a credit card?
What is the time period during which no interest is charged on a credit card?
[A]Grace period
[B]Term period
[C]Loan period
[D]Sanction Period
Grace period
A credit card’s grace period is the time the customer has to pay the balance before interest is charged to the balance. Grace periods vary, but usually range from 20 to 30 days depending on the type of credit card and the issuing bank. If a customer is late paying the balance, finance charges will be calculated and the grace period does not apply.