Credit card grace period
A credit card grace period is a period where the credit card company offers a period where you do not have to pay interest on any of your principal. If you make a new purchase, say a new TV, you might be afforded a few weeks of no interest on the purchase before interest goes into effect.
This period usually lasts between 20-30 days, so you will not have forever, but that is a legitimate amount of time for you to have the opportunity to pay off whatever purchases you have made without interest.
If you are looking on getting a new credit card, a grace period is something that you should look out for and is a definite plus. People do not get paid every day, unfortunately. You are going to get your paycheck every week or every other week, so if you have to make a purchase and you would rather not have to pay interest on it immediately a grace period will definitely help you out.
Credit card companies are facing more and more regulation and restrictions on their practices as of late so they are looking for every loophole they can find to continue to make as much money or more money as they have had in the past. Eliminating grace periods is one avenue that many credit card companies are considering.
If you are the type of person who buys everything on their credit card and then attempts to pay it all off immediately to build your credit score, then a credit card with a grace period is crucial to you.
A grace period can definitely help out many people by delaying interest charged on purchases but it is important to remember that no matter what, you will be charged interest at one time or another so it is still in your best interest to only buy things that you can afford and to live well within your means.