Grade Period Definition: A grace period refers to the extra amount of time that is provided after a due date, which allows for the payment of an installment or fee, such as rent, without penalty. In many cases, the grace period can last between three and fifteen days, and it’s common for most agreements involving insurance or a mortgage.
This time frame allows a consumer to delay a payment, so they can catch up when they receive income, such as payroll, if it is received beyond the due date. During the grace period, no cancellation will occur, and there will be no late fees. Payment during the grace period will not adversely affect your credit rating or report.