The Catechism in Questions & Answers

58. What does it mean when we say: “God is the Gracious One”?

God turns to mankind in mercy, grace, patience, and kindness (cf. Psalm 103: 8). That God is gracious is demonstrated first and foremost by the fact that He accepts human beings, who are entangled in sin, and forgives sin. Also included here is the fact that God became human in Jesus Christ.
No one can earn the grace of God. It is a gift.