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 55 days depending on the type of credit card and the issuing bank. A Lapse is the termination of a policy because premiums are not paid before the end of the Grace Period. Some policies allow for Reinstatement after certain conditions are met. Usually, if a customer is late paying his balance, finance charges will be calculated and the grace period doesn't apply any more.