We've organized the most common financial terms and explained them in simple, friendly ways.
For cars that are leased or bought with a loan (not yet paid in full), gap coverage pays for the difference between the value of a car and what is still owed, if it is either totaled in an accident or stolen.
For a credit card or loan, this is the time frame after a due date where an account holder can still make payment without typically receiving a penalty or late fee, to keep the account in good standing. With most credit card accounts, interest will still be applied for payments during the grace period.
The period of time (generally 30 days) from when a monthly premium is due to when the insurance company can stop coverage if the policyholder has failed to make their payment.