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A credit card's grace period is the time the consumer has to recompense the balance previous to interest is charged to the balance. Grace periods differ, but generally range from 20 to 40 days depending on the type of credit card and the issuing bank. Some policies permit for return after certain circumstances are met.
Frequently, if a customer is not on time paying the balance, finance charges will be compute and the grace period does not be appropriate. Finance charges incurred depend on the grace period and balance; with most credit cards there is no grace period if there is any terrific balance from the preceding billing cycle or statement (i.e. interest is practical on both the preceding balance and new dealings). Though, there are some credit cards that will only be relevant finance charge on the preceding or old balance, excluding new transactions.
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