Mercy Of Allah

Bismillah Hir Rehman Ir Raheem
Start In the Name Of Allah The Most Beneficent The Most Merciful

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"..My Mercy embraces all things..." [7:156]
"And your Allah is One Allah: There is no god but He, Most Gracious, Most Merciful." [2:163]

Allah's mercy is beyond limits . Allah is the Most Merciful of those who show mercy. His mercy is all-embracing. Whoever is bereft of Allah’s mercy is most truly lost. It is only by Allah’s mercy that anyone attains Paradise. It is by His mercy alone that sins are pardoned and that anyone is assured of salvation. Allah is worthy of our fear. Equally, He is worthy to be the One to show us mercy. 
"And they will not remember except that Allah wills. He is worthy of fear and adequate for [granting] forgiveness." [74:56]

Mercy of Allah can come in different forms it can be in form of a Guidance, Favor, Love, Forgiveness, etc.
"Indeed, the mercy of Allah is near to the doers of good." [7:56]

It is right for us to fear Allah. We should shun sinful deeds and show obedience to our Creator. Likewise, Allah is worthy to show mercy to those who strive to obey Him and who return to Him whenever they might stray. 
"And those who, when they commit an immorality or wrong themselves [by transgression], remember Allah and seek forgiveness for their sins - and who can forgive sins except Allah ? - and [who] do not persist in what they have done while they know." [3:135]

To obtain Allah's mercy we should also show mercy to His creations
Bukhari Volume 8, Book 73, Number 42:
Narrated Jarir bin 'Abdullah: The Prophet said, "He who is not merciful to others, will not be treated mercifully.

Bukhari Volume 9, Book 93, Number 473:
Narrated Jarir bin 'Abdullah: Allah's Apostle said, "Allah will not be merciful to those who are not merciful to mankind."

The Mercy of Allah

Disbelievers' sins will be all forgiven for them when they embrace Islam:
"Say to the Unbelievers, if (now) they desist (from unbelief), their past would be forgiven for them; but if they persist, the punishment of those before them is already (a matter of warning for them)."  [Quran 8:38]
"The Lord of the heavens and the earth, and all between,- Exalted in Might, able to enforce His Will, forgiving again and again."  [Quran 38:66]

If we are sincere, our daily sins are almost always forgiven:
"Those who avoid great sins and shameful deeds, only (falling into) small faults,- verily thy Lord is ample in forgiveness. He knows you well when He brings you out of the earth, And when ye are hidden in your mothers' wombs. Therefore justify not yourselves: He knows best who it is that guards against evil." [Quran 53:32]

If you ask Allah Almighty for forgiveness, then He'll forgive you:
"If any one does evil or wrongs his own soul but afterwards seeks God's forgiveness, he will find God Oft-forgiving, Most Merciful." [Quran 4:110]

If you are grateful to Allah Almighty, then He'll give you more:
"And remember! your Lord caused to be declared (publicly): 'If ye are grateful, I will add more (favours) unto you; But if ye show ingratitude, truly My punishment is terrible indeed.'  [Quran 14:7]

Be sure that Allah Almighty is always Willing to forgive all of your sins:
"Say: 'O my Servants who Have transgressed against their souls!  Despair not of the Mercy of Allah:  for Allah forgives all sins for He is Oft-Forgiving, Most Merciful." [Quran 39:53]

Obeying Allah and Messenger:
"And obey Allah and the Messenger that you may obtain mercy." [3:132]

Everybody sins but the best is the one who repents and seek Mercy and Forgiveness of Allah
"And when those come to you who believe in Our verses, say, "Peace be upon you. Your Lord has decreed upon Himself mercy: that any of you who does wrong out of ignorance and then repents after that and corrects himself - indeed, He is Forgiving and Merciful." [Quran 6:54]

"And those who, when they have committed Fahishah (illegal sexual intercourse etc.) or wronged themselves with evil, remember Allah and ask forgiveness for their sins; - and none can forgive sins but Allah - And do not persist in what (wrong) they have done, while they know. For such, the reward is Forgiveness from their Lord, and Gardens with rivers flowing underneath (Paradise), wherein they shall abide forever. How excellent is this reward for the doers (who do righteous deeds according to Allah's Orders)." [3:135:136]

There are many other ample verses. Allah knows the best