Credit Card Grace Period

B

The correct answer to this question is B. Grace period.

A grace period is the time between the billing cycle end date and the due date for payment of a credit card bill during which no finance charges are applied. This period allows credit cardholders to pay their balance in full without incurring interest charges. The length of the grace period can vary from one credit card issuer to another, but it typically ranges from 21 to 25 days.

It's important to note that the grace period only applies if the cardholder pays the full balance on their credit card statement by the due date. If the balance is not paid in full, then finance charges will be applied to the outstanding balance, starting from the date of the transaction.

Credit card issuers are required by law to disclose the length of the grace period in their cardholder agreement, which is the contract between the card issuer and the cardholder. It's important for credit cardholders to review their cardholder agreement carefully to understand the terms and conditions associated with their credit card, including the grace period, interest rates, fees, and other charges.