What is the timeframe within which you may pay your current balance in full and incur no finance charge?
When a bill is paid within fifteen days of its due date this is considered an automatic grace period?
When a bill is paid within 15 days of its due date, this is considered an automatic grace period. Businesses can make credit inquiries on you without your permission, but usually those inquiries do not count toward your credit score.
What is the free period that allows you to avoid a finance charge if you pay in full before the due date?
Personal Finance Chapter 16 Vocabulary
| A | B |
|---|---|
| grace period | The free period; allows you to avoid a finance charge if you pay in full before the due date |
| creditor | One who lends money or the use of goods and services for payment at a later date |
| credit | Paying at a future date for the present use of goods and services or money |
How long will it take me to pay off my debt?
A good rule of thumb is to try to pay off any card balance in 36 months, but you might want to see what it will take to pay off the balance in shorter or longer increments of time.
Is the total dollar amount of all interest and fees you pay for the use of credit?
finance charge
The finance charge is the total dollar amount of all interest and fees you pay for the use of credit.
What does a 15 day grace period mean?
A grace period is a set length of time after the due date during which payment may be made without penalty. A grace period, typically of 15 days, is commonly included in mortgage loan and insurance contracts.