Free
Grace, faith, and good works
We are saved by grace; faith working through love bears fruit.
Catholic teaching rejects both works-righteousness that forgets grace and a faith that refuses cooperation. Initial justification is unmerited; growth in holiness involves free response.
Sanctifying grace
Grace is a share in God’s own life, healing and elevating nature. It is not merely external favor but interior transformation.
Faith and charity
Faith without works is dead (James). Love completes faith; the commandments express love of God and neighbor under grace.
Merit
Strictly speaking, humans merit only because God promises reward to his gifts at work in us. Merit is always dependent on grace, never boasting before God.