G.R.A.C.E. = God’s Riches At Christ’s Expense. For our sins, we deserved an eternity separated from Him, BUT GOD stepped in and applied Grace to our lives. There's a huge difference between grace and mercy. Mercy is God not giving us what we do deserve (punishment for our sins). Grace is God giving us something we do not deserve (Heaven, salvation, and eternal life in Christ). Without the shedding of Jesus' blood on the cross, God's grace could not be applied to our lives.