What is the grace period for a late payment?


Editorial team Published on

A late payment grace period is a set number of days after your official due date when you can pay a bill without getting a late fee or hurting your credit score.

How Grace Periods Work by Account Type

  • Mortgages: Most home loans have a grace period of 15 calendar days after the due date before a late fee is added.
  • Credit Cards: Credit cards do not have a post-due-date grace period for fees; you are technically late the day after the due date. However, lenders usually do not report a late payment to credit bureaus until you are at least 30 days past due.
  • Other Loans: Check your specific contract or Legal Information Institute guidelines to see if a formal grace period applies to your auto, student, or personal loan.

What Happens If You Miss the Grace Period

  • Late Fees: You will likely be charged a fee as soon as the grace period ends (often $25 to $41 for credit cards or a percentage of your monthly mortgage).
  • Interest and Penalty APRs: For credit cards, paying late means losing your interest-free window, and missing payments by 60 days can trigger a high penalty APR.
  • Credit Score Damage: Once a payment is 30 days or more late, it can be reported to credit bureaus and stay on your credit report for up to 7 years.