A payment grace period is the amount of time you have to make a payment after the due date and still be considered on time. For example, if your payment is due on the 5th of the month and you have a 10-day payment grace period, then you have until the 15th to make payment. On the 16th, you’ll be considered past due and will face late payment penalties.
Payment grace periods most often apply to installment loans rather than credit cards. Credit cards do have a grace period, but this grace period refers to the amount of time you can pay your balance in full and avoid paying interest on the balance. With credit cards, your payment has to be received on the due date by 5 pm to avoid late payment penalties – there is no window of time after the due date that you can send your payment to avoid a fee.