grace period Hear it!

grace period definition - finance
  1. A time period between when a cost is incurred and when a payment is due. Grace periods often are associated with credit cards that donÂ’t start charging interest on new purchases until 25 days after the item has been charged.
  2. A time period in which insurance wonÂ’t be cancelled if a payment isnÂ’t received.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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