Question

The grace period is a period of time before the credit card company starts charging interest. true false

Answer 1

The grace period is a period of time before the credit card company starts charging interest. true

Answer 2

Answer:

The statement is true. The grace period is a period of time before the credit card company starts charging interest.

Explanation:

The grace period is a period that begins immediately after the deadline for fulfilling an obligation, during which no late fee is charged and no other sanctions are taken that would otherwise have been taken or charged for breach of the deadline. It is therefore a standstill period between the payment of the loan and the maturity of the first installment, during which neither interest nor principal are paid.

As a rule, banks offer credit cards with a grace period at “zero” percent for a short period, supposedly on favorable terms for customers, for example, those who open a deposit with a significant minimum amount. Additionally, banks include clauses on obligatory payments in the loan agreement, which make up a certain percentage of the loan taken, and also charge a percentage for cashing out funds on a credit card. As a rule, the amount of these percentages is more than the interest on the deposit, in order to exclude the placement of the bank’s funds on the client’s deposit.